11-09-2018 05:30 PM
Gold prices moved up on Tuesday, as a lower U.S. dollar and trade worries strengthened the precious metal.Trade war worriesare unrelenting to relieve investor sentiment. Robert E. Lengthier, the United States trade representative met with European Union representatives in Brussels on Monday to talk about trade tariffs.
In the interim U.S. President Donald Trump wants to impose duty on almost all imported Chinese goods .China’s foreign ministry said on Monday that it would take action to any new steps on trade.
Trade worries counterbalance prospect for a Federal Reserve rate hike in September, pushing the greenback lower and increasing the price of gold. The U.S. dollar index fell 0.18% to 94.95.
Gold usually climbs as the dollar falls, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more pricey for holders of other currencies when the dollar climbs and cheaper when it falls.
The gold prices have dropped over 12% since April as investors turned to the safe-haven appeal of the greenback, with investors feeling the U.S. has less to lose in a trade war.