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Gold Prices Slip Despite Dollar Hitting One-Month Low On Trade War Fear

Published 26/03/2018, 04:51 pm
Gold prices slipped on Monday
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Investing.com – Gold prices slipped on Monday, giving up its earlier gains in the day although the dollar plunged amid geopolitical concerns.

Gold Futures for April delivery on the Comex division of the New York Mercantile Exchange fell $3.20, or 0.24%, to $1,347.10 a troy ounce by 1:40AM ET (05:40 GMT). 

The precious metal rose to a five-week high earlier in the day as fears of a full-blown trade war between China and the U.S. weighed on the dollar and equities markets, which drove up demand for the safe-haven assets.

The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.03, down 0.09% and hit a one-month low at 88.96 on Monday morning. Investors also await the U.S. GDP figures due later in the week.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold cheaper for holders of foreign currency and thus increases demand for the precious metal. 

In other precious metal trade, Silver Futures fell 0.25% to $16.540 a troy ounce, and Platinum Futures slipped 0.01% to $954.00 an ounce. 

Meanwhile, Asian equities trade mostly lower on Monday, with Japan’s Nikkei being the exception as it outperformed its regional peers and gained 0.4% higher.

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