Investing.com – Gold was higher on Tuesday, driven by a weaker U.S. dollar and geopolitical tensions in Syria.
The price of the precious metal rose as the greenback reached a two-week low. The , which measures the greenback’s strength against a basket of six major currencies, was down 0.25% to 89.31 as of 10:52 AM ET (14:52 GMT).
Comex for June delivery rose 0.21% to $1,342.90 a troy ounce.
Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.
Geopolitical tensions in the Middle East have also bolstered bullion.Investors are worried that U.S.-Russia relations could deteriorate amid the heightened uncertainty after a suspected chemical attacks. On Monday U.S. President Donald Trump said he would decide how to respond to the attacks by Wednesday, indicating a potential military response.
Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies.
Meanwhile Chinese President Xi Jinping reiterated comments on Tuesday that he would open the country’s economy and lower import tariffs on automobiles. He also promised to enforce the legal intellectual property of foreign firms, which was a point of contention for Trump. The comments helped soothe investor worry over an escalating trade war between the two countries.
Elsewhere on the Comex, were up 0.43% to $16.600 a troy ounce. Among other precious metals, fell 0.75% to $932.40, while rose 1.91% to $950.30 an ounce. futures surged 1.79% to $3.132 a pound.
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Source: Investing.com
