Gold Prices Slip Near Six-Month Low on Firmer Dollar

Investing.com – Gold prices slipped on Wednesday, sat near a more than six-month low as the dollar steadied amid seemingly easing trade tension.

for August delivery on the Comex division of the New York Mercantile Exchange slipped 0.26% to $1,256.60 a troy ounce by 1:15AM ET (05:15 GMT).

U.S. President Donald Trump suggested during a meeting with lawmakers that his administration may switch to foreign investment reviews under the Committee on Foreign Investment in the United States instead of imposing new limits on Chinese investment in U.S. technology. 

“We have the greatest technology in the world, people copy it and they steal it, but we have the great scientists, we have the great brains, and we have to protect that,” Trump said. “And that can be done through CFIUS, we have a lot of things we can do it through.”

The  that tracks the greenback against six major currencies stood at 94.32 on Wednesday morning at 12:54AM (04:54GMT), up 0.01%. The index fell to a low point of 93.94 on Monday over worries of escalating trade tensions between the U.S. and its trade partners, but a modest easing in concerns slightly revived risk appetite. 

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A gain in the dollar makes gold more expensive for holders of foreign currency and thus, decreases demand for the precious metal.  

On Tuesday, it was reported that the U.S. Treasury Department is drafting curbs to stop companies with at least 25% Chinese ownership from buying U.S. tech firms. The news provided some support for gold prices earlier in the day.

In other precious metal trade, fell 0.4% to $16.185 a troy ounce, while fell 0.5% at $867.80 an ounce. 

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