Investing.com – Gold was higher on Wednesday, as the possibility of a U.S. military strike in Syria drove investors to the risk adverse precious metal.
U.S. President Donald Trump canceled a trip to Latin America on Tuesday to focus on a response to a suspected chemical weapons attack in Syria, the White House said. Trump said he will respond to the attacks this week, once it was established who was responsible. On Twitter, Trump told Russia to “Get ready… because they (missiles) will be coming…”
Comex for June delivery rose 0.85% to $1,357.30 a troy ounce as of 10:23 AM ET (14:23 GMT).
The fall in the greenback also bolstered the price of bullion. The , which measures the greenback’s strength against a basket of six major currencies, was down 0.18% to 89.16.
The dollar fell after data showing had fallen more than expected. Traders were also looking ahead to the latest Federal Reserve meeting minutes.
Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.
Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies.
Elsewhere on the Comex, were up 0.87% to $16.740 a troy ounce. Among other precious metals, rose 0.90% to $941.50, while inched forward 0.38% to $953.40 an ounce. futures fell 0.32% to $3.127 a pound.
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Source: Investing.com
