Investing.com - Gold prices inched up on Tuesday, as a lower U.S. dollar and trade tensions bolstered the precious metal.
Comex gold futures for December delivery rose 0.16% to $1,201.70 a troy ounce as of 4:11 AM ET (8:11 GMT).
Trade war tensions continued to ease investor sentiment. Robert E. Lighthizer, the United States trade representative met with European Union officials in Brussels on Monday to discuss trade tariffs. While Lighthizer called the talks “constructive,” a deal is not likely to be reached as soon as the White House administration would like.
Meanwhile U.S. President Donald Trump wants to impose tariffs on almost all imported Chinese goods .China’s foreign ministry said on Monday that it would respond to any new steps on trade.
Trade fears offset expectations for a Federal Reserve rate hike in September, pushing the greenback lower and increasing the price of gold. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.18% to 94.95.
Gold usually rises as the dollar falls, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Still, the gold prices have fallen over 12% since April as investors turned to the safe-have appeal of the greenback, with investors feeling the U.S. has less to lose in a trade war.
Other metals were higher on the Comex, with silver futures up 0.52% to $14.255 a troy ounce. Among other precious metals, Platinum Futures rose 0.35% to $792.80 while Palladium Futures increased 0.27% to $967.20 an ounce. Copper futures surged 1.14% to $2.658 a pound.