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Gold Prices Fall Sharply as Dollar Lifts Amid Ongoing China-US Talks

Published 03/27/2018, 02:02 PM
© Reuters.
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Investing.com – Gold prices were on track to snap a three-day winning streak as the dollar strengthen after fears of a global trade war moderated amid ongoing China-U.S. dialogue on trade.

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange fell by $11.70, or 0.86%, to $1,343.30 a troy ounce.

"The two economies are highly complementary to each other and their cooperation has been continuously expanding," said Chinese Premier Li Keqiang.

Li added that while China is working toward a solution through “dialogue and consultation,” the country is “fully prepared with counter measures.”

Investor sentiment on gold prices remained bullish as the precious metal is expected to advance despite the backdrop of a rising interest-rate environment.

"Our commodities team believes that the dislocation between the gold prices and U.S. rates is here to say," Goldman Sachs analysts, led by Eugene King, said in a research note published Monday.

"Based on empirical data for the past six tightening cycles, gold has outperformed post rate hikes four times," the analysts added.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, silver futures fell 0.95% to $16.53 a troy ounce, while platinum futures lost 0.53% to $951.30 an ounce.

Copper rose 0.84% to $2.99, while natural gas rose 1.51% to $2.70.

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