Investing.com – Gold prices tumbled Wednesday, as the dollar added to gains, while the Trump administration’s threat of further tariffs on Chinese goods roiled other metals as copper sank to a nearly one-year low.
for August delivery on the Comex division of the New York Mercantile Exchange fell by $10.60 or 0.37%, to $1,255.00 a troy ounce, hovering just above an intraday low of $1,247.80.
The White House issued a list late Tuesday of 10% tariffs on $200 billion worth of Chinese imports it will assess.
The threat of further U.S. tariffs on Chinese goods failed to garner investor demand for safe-haven gold, as dollar strength continued to keep a lid on the yellow metal.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.61% to 94.41 amid positive wholesale inflation data Tuesday.
As well as data Tuesday, the U.S. Senate’s approval of a motion to give Congress a role in reviewing President Donald Trump’s decision to impose tariffs on national security grounds, also boosted the greenback.
Dollar-denominated commodities such as gold are sensitive to moves in the dollar. A rise in the dollar makes gold more expensive for holders of foreign currency, reducing demand for the precious metal.
Renewed trade-war concerns drew a large negative reaction from other metals as copper, zinc, aluminium and nickel fell sharply on expectations that a trade-war would limit demand from China – responsible for more than half of the world’s total metal consumption.
, fell 3.40% to $2.74, while fell 2.60% to 2,557.50.
fell 1.23% to 2,062.00, while fell 1.59%.
fell 1.27% to $15.81 a troy ounce, while lost 1.63% to $832.40.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com