ZCZC
BCN-14
US-GOLD-FUTURE-COMEX
Gold inches lower as U.S. dollar strengthens
CHICAGO, June 09, 2018 (BSS/Xinhua) – Gold futures on the COMEX division of
the New York Mercantile Exchange inched lower on Friday as the U.S. dollar
strengthened.
However, the trade disputes between the United States and other countries
continued to support the precious metal, limiting its fall.
The most active gold contract for August delivery fell 0.30 dollars, or
0.02 percent, to close at 1302.70 dollars per ounce.
The U.S. dollar index, a gauge of the greenback against a basket of other
major currencies, rose 0.19 percent to 93.555 as of 1615 GMT.
Gold and the dollar typically move in opposite directions, which means if
the dollar goes up, gold futures will fall as gold, measured by the dollar,
becomes more expensive for investors using other currencies.
But when G-7 leaders are meeting in Canada, trade tensions between the U.S.
and other industrialized countries are catching people’s eyes.
Canadian Prime Minister Justin Trudeau has expressed that retaliatory
action, though regretful, is necessary against the U.S. for President Donald
Trump’s tariffs against the European Union, Mexico and Canada.
French President Emmanuel Macron has tweeted, “the six other G-7 countries
combined form a larger market than the American market… We allies cannot
wage a trade war on each other.”
Geopolitical tensions and trade disputes are often bullish factors for
gold, a safe haven asset.
As for other precious metals, silver for July delivery fell 7.4 cents, or
0.44 percent, to settle at 16.741 dollars per ounce. Platinum for July was up
5.4 dollars, or 0.6 percent, to close at 905.70 dollars per ounce.
BSS/XINHUA/HR/1100