Gold fell, but managed to remain above seven-month lows on Friday. The weak dollar failed to lift sentiment as other metals stabilized, as the fears of a US-China trade war settled.
Gold futures for August delivery on the New York Mercantile Exchange fell by $5.30 or 0.43% to trade at $1,241.
Gold prices rebounded from their losses and remained on track for almost two weeks, calming fears of a global trade war, and offsetting the dollar’s retreat against rivals from a two-week high. The dollar index, which measures the strength of the dollar against a range of major currencies, rose 0.01% to trade at 94.58 points, but remained well below the intraday high of 95.00.
Commodities which are denominated in USD, such as gold, are more sensitive to the movements that are taking place and hurting the greenback, as its appreciation makes gold more expensive for foreign currency holders, reducing demand for the precious metal.
The bearish momentum in other metals has been limited, with a decline in trade-related concerns, as have eased down on fears on the possibility of new tensions between China and the United States. China’s trade surplus rose by about $29 billion and it was said that the sharp growth in exports, which boosted the surplus significantly, was unsustainable. The growth is generally considered to be a result of Chinese exporters accelerating shipments before the US tariffs take effect, in the first week of July.
Copper prices fell 0.07%, to $2.78, while zinc prices were down 0.08%, to $2,580. Aluminum prices fell 0.17%, to $2,039. Silver futures fell 0.98% to $15.82 an ounce, while platinum futures fell 1.89% to $830.40 — nearing 10-year lows on expectations of lower demand from the auto sector amid potential tariffs that might affect automakers.
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