Gold Prices Advance on Softer Dollar

Investing.com – Gold prices advanced on Wednesday as the dollar softened.

for December delivery on the Comex division of the New York Mercantile Exchange gained $3.5, or 0.29%, to $1,221.7 a troy ounce by 1:30AM ET (05:30 GMT).  

The , which tracks the greenback against a basket of other currencies, was down 0.2% at 94.87 on Wednesday.

A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.

“Gold is consolidating here for the moment. The dips on the dollar still seem to be bought so I am sceptical to call a bottom on gold,” Philip Ho, a Hong Kong-based trader said.

Despite recent weakness, the dollar index rose more than 6% since mid-April. Rate hikes by the Federal Reserve were cited as supportive for the dollar.  

The U.S. said on Wednesday that it would begin on an additional $16 billion in Chinse goods in two weeks.   

The move would be the second time the Trump administration imposed duties on Chinese imports since July. The U.S. levied 25% duties on $34 billion in Chinese goods on July 6. In response, China followed up by imposing duties on the same value of U.S. products. China’s Ministry of Commerce said it had no choice but to respond to the U.S. after the latter “launched the largest trade war in economic history.”   

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