Gold Remains Flat as Dollar Falls
Investing.com - Gold prices were modestly higher on Friday but remained at a six-month low as the dollar fell and trade tensions waned.
Comex gold futures for August delivery were up 0.02% to $1,270.80 a troy ounce as of 10:31 AM ET (14:31 GMT).
Tensions between the U.S. and its allies remained on the back of investors minds, as the European Union imposed tariffs on about $3.4 billion of U.S. imports on Friday, including motorcycles, jeans, and whiskey. The expected tariffs have added to tensions as investors fear an outright global trade war between the U.S.and other major countries.
Traders often turn to gold in times of political uncertainty, as the precious metal is often considered a safe haven from the impact of geopolitics but gold has struggled amid the latest political risks.
Meanwhile the U.S. dollar was lower. Gold normally rises as the dollar falls, as the precious metal is denominated in the U.S. currency and is sensitive to moves in the dollar but was held back despite a fall in greenback.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 94.25, falling 0.11%.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Elsewhere on the Comex, silver futures were up 0.51% to $16.410 a troy ounce. Among other precious metals, Platinum Futures rose 0.85% to $870.50 while Palladium Futures increased 0.47% to $950.00 an ounce. Copper futures lost 0.18% to $3.016 a pound.
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