Gold Prices Near Session Highs as Geopolitical Tensions Steady Safe-Haven Demand

Investing.com – Gold prices remained close to session highs Tuesday as dollar weakness and heightened geopolitical tensions offset easing trade-war fears as investors awaited US president Trump’s decision on Syria.

for June delivery on the Comex division of the New York Mercantile Exchange rose by $4.50, or 0.30%, to $1,344.60 a troy ounce. Gold prices rose to a session high of $1,346.10.

White House Press Secretary Sarah Sanders confirmed Tuesday that President Trump will not attend the 8th Summit of the Americas in Lima, Peru or travel to Bogota, Colombia as originally scheduled but “will remain in the United States to oversee the American response to Syria.”

This comes a day after Trump said during a meeting with military leaders that he was preparing a response to reports of an alleged chemical weapons attack in Syria. “We have a lot of options, militarily. And we’ll be letting you know pretty soon,” Trump told reports on Monday.

The prospect of a U.S. military response in Syria steadied demand for safe-haven gold amid easing trade-war fears after China’s president Xi Jinping adopted a reconciliatory tone on tariffs overnight Tuesday.

Xi said China would lower import tariffs on vehicles, encourage imports and strengthen the protection of intellectual property.

The slump in the also supported a move higher in gold prices despite PPI data topping economists’ forecasts.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A fall in the dollar makes gold cheaper for holders of foreign currency, raising demand for the precious metal.

In other precious metal trade, rose 37% to $16.59 a troy ounce, while fell 0.54% to $934.30 an ounce.

gained 2.01% to $3.14.

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