Investing.com – Gold prices fell on Monday as the greenback rose amid easing trade tensions and investors rallied to equities.
Comex for December delivery fell 0.34% to $1,192.10 a troy ounce as of 11:36 AM ET (15:36 GMT).
The U.S. and Canada reached a trade deal on the North American Free Trade Agreement (NAFTA) on Sunday night, just hours before the deadline, easing trade tensions across the globe.
The deal was renamed the United States-Mexico-Canada Agreement and will give the U.S. access to Canadian dairy market and will cap Canada’s auto exports to the U.S.
U.S. President Donald Trump had given Canada until the end of September to make a deal or face being left out of the new trade agreement. The U.S. already made a deal with Mexico, the third NAFTA member, earlier in the month.
The , which measures the greenback’s strength against a basket of six major currencies, increased 0.16% to 94.95. The greenback was also bolstered by increased expectations of a rate hike, which tend to boost the dollar by making the currency more attractive to yield-seeking investors.
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 lower on the Comex, with slumped 1.75% to $14.455 a troy ounce. Among other precious metals, rose 0.12% to $823.50, while decreased 2.30% to $1,048.10 an ounce. futures lost 0.36% to $2.795 a pound.
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Source: Investing.com
