Investing.com – Gold prices were flat on Monday amid expectations of a Federal Reserve rate hike and trade war tensions lowered investor sentiment.
Comex for December delivery fell 0.08% to $1,199.40 a troy ounce as of 4:43 AM ET (8:43 GMT).
The price of gold was flat as Friday’s upbeat increased of a .
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Trade tensions with China continued, as U.S. President Donald Trump warned he would impose tariffs on $267 billion worth of Chinese imports, on top of an earlier promise of tariffs on $200 billion worth of Chinese goods.
Trade worry and rate hike expectations have pushed the greenback near a one-year high, which weighed on gold. 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 mixed on the Comex, with up 0.46% to $14.235 a troy ounce. Among other precious metals, rose 0.33% to $783.00 while decreased 0.23% to $966.60 an ounce. futures slumped 0.55% to $2.608 a pound.
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Source: Investing.com
