Investing.com – Gold prices rose sharply as easing geopolitical uncertainty was offset by a fall in the dollar amid ongoing concerns over the prospect of a global trade war, and speculation that economic advisor Gary Cohn could step down should Trump proceed with plans to impose tariffs.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange increased by $16.40, or 1.24%, to $1,336.30 a troy ounce.
Geopolitical uncertainty on the Korean peninsula eased amid reports that North Korea is open to denuclearisation should the safety of its regime be guaranteed.
That eased safe-haven demand somewhat but failed to dent appetite for gold as the yellow metal rose to a nearly seven-day high after the dollar slumped weighed by fresh political uncertainty in Washington and ongoing fears over a trade war.
Gold traditionally trades inversely to the dollar– A weaker dollar relative to other currencies makes gold more attractive to foreign-currency holder, leading to rise in gold prices.
Economic advisor Gary Cohn was said to be actively contemplating his future amid Trump’s recently announcement tariffs, CNBC reported, citing a source familiar with Cohn.
A report from Bloomberg News, meanwhile, suggested that President Donald Trump believes Cohn will resign from the White House if the administration proceeds to impose import tariffs of 25% on steel and 10% tariff on aluminium.
In other precious metal trade, silver futures rose 2.33% to $16.80 a troy ounce, while platinum futures gained 0.90% to $970.80 an ounce.
Copper rose 0.99% to $3.16, while natural gas added 1.52% to $2.75.