Investing.com - Metals prices were mostly higher Tuesday as a report that China and the United States were trying to restart trade talks lifted sentiment, overshadowing an uptick in the dollar.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $2.30, or 0.19%, to $1,223.60 a troy ounce, to remain just shy of an an intraday high of $1,227.20.
Bloomberg reported, citing sources, the U.S. and China are trying to restart talks on trade to avert a full-blown trade war between the world’s two largest economies.
The report comes as focus shifted to U.S.-China trade tensions as the next wave tariffs on imported goods from China is expected to come into effect Wednesday, with China vowing to retaliate in kind.
Yet renewed efforts by both countries to find common ground on trade issues dominated trading direction in metals, offsetting a rise in the dollar.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.18% to 94.31 as the Federal Reserve's two-day meeting got underway.
According to Investing.com's Fed Rate monitor tool, 96.9% of traders expect the Federal Reserve to stand pat on interest rates when it reveals its policy decision on Wednesday.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest.
The modest rise in gold prices, however, is unlikely to avert a fourth monthly loss in a row for the yellow metal for the first time in more than five years.
Copper prices rose 1.43% to $2.83, while zinc prices rose 3.10% at 2,636.50.
Aluminium prices fell 0.10% to 2,082.50, while Nickel futures rose 1.26% to 14,072.50.
Silver futures rose 0.21% to $15.57 a troy ounce, while platinum futures rose 1.25% to $841.90.