Investing.com – Gold prices slipped on Tuesday despite rising fears over trade tensions between the U.S. and other major economies. The U.S. is set to impose 25% tariffs on $34 billion worth of Chinese goods on Friday.
for August delivery on the Comex division of the New York Mercantile Exchange slipped 0.17% to $1,239.60 a troy ounce by 1:15AM ET (05:15 GMT).
Gold is usually seen as a safe-haven in times of economic uncertainties, but has failed to do so lately.
Meanwhile, the , which tracks the greenback against a basket of six major currencies, stood at 94.67, up 0.07%.
“There’s a strong element of ‘risk off’ generated by trade concerns behind the dollar’s latest rise. That said, the dollar has managed to gain only as emerging market and commodity currencies have slid due to risk aversion,” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A gain in the dollar makes gold more expensive for holders of foreign currency and thus, decreases demand for the precious metal.
“It’s all about the USD (U.S. dollar) demand rather than any news specific as the markets insatiable demand for USD to ride out yet another building perfect storm has the USD glittering. As such Gold is especially vulnerable in such an environment,” said Stephen Innes, APAC trading head at OANDA.
The Fed is expected to raise interest rates at least four times this year, which would likely to further dent gold prices.
In other precious metal trade, were unchanged at $15.835 a troy ounce, while fell 1.84% at $805.70 an ounce.
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Source: Investing.com
