Gold Rises as Trade Woes Continue

Investing.com – Gold prices rose on Friday as Canada and the U.S. rushed to finish trade negotiations before the end of the day.

Comex for December delivery rose 0.43% to $1,210.20 a troy ounce as of 11:02 AM ET (15:02 GMT). Trade is expected to be light ahead of the Labor Day weekend, with markets closed on Monday.

The price of gold was driven higher as trade tensions pushed investor sentiment from equities to commodities. Canadian and American officials are negotiating the NAFTA trade agreement ahead of a deadline at the end of the day. The U.S. reached a deal with Mexico on Monday and has given Canada until Friday to join in the new trade deal.

Other trade tensions continued, with China warning on Friday that putting pressure on Beijing wouldn’t work. U.S. President Donald Trump wants to move ahead with a plan to impose tariffs on $200 billion worth of Chinese goods when the public comment period ends next week.

In addition, Trump said Thursday in an interview that he was prepared to withdraw from the World Trade Organization if necessary.

Meanwhile the European Union offered to eliminate tariffs on cars, but Trump said the offer was “not good enough.” Trump has threatened to impose a 25% tariff on all vehicles, with the EU threatening to retaliate.

The price of gold was unmoved by a higher greenback. The , which measures the greenback’s strength against a basket of six major currencies, rose 0.21% to 94.84.

Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were mostly higher on the Comex, with up 0.28% to $14.635 a troy ounce. Among other precious metals, rose 0.38% to $794.80, while increased 0.67% to $967.10 an ounce. futures slumped 0.75% to $2.697 a pound.

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