Investing.com – Gold prices fell on Wednesday, as the U.S. dollar rallied and trade tensions lingered.
Comex for December delivery fell 0.17% to $1,200.10 a troy ounce as of 4:54 AM ET (8:54 GMT).
Investors are closely watching trade developments after U.S. President Donald Trump threatened on Friday to impose tariffs on almost all Chinese imports, or about $467 billion in goods.
China is planning to ask the WTO for permission to impose sanctions on the U.S. at a meeting next week. Chinese officials had previously stated they would retaliate on any trade moves from Washington.
Trade conflict between the U.S. and China continued to drive investors to buy the dollar, driving down the price of gold as traders feel that the U.S. has less to lose in a trade war.
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.
Gold prices have been stuck in the $1,200 range for the past two weeks as investors turn to the safe-have appeal of the greenback.
Expectations for a in September also helped push the greenback higher. The , which measures the greenback’s strength against a basket of six major currencies, rose 0.11% to 95.15.
Other metals were mostly higher on the Comex, with up 0.37% to $14.205 a troy ounce. Among other precious metals, rose 0.18% to $790.80 while decreased 0.18% to $960.10 an ounce. futures surged 1.43% to $2.659 a pound.
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
