Gold Prices Advance on Softer Dollar

On Wednesday,  Gold prices advanced  as the dollar softened.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained $3.5, or 0.29%, to $1,221.7 a troy ounce by 1:30AM ET (05:30 GMT).

The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, was down 0.2% at 94.87 on Wednesday.

A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.

 Philip Ho, a Hong Kong-based trader said, “Gold is consolidating here for the moment. The dips on the dollar still seem to be bought so I am sceptical to call a bottom on gold,”.

Despite recent weakness, the dollar index rose more than 6% since mid-April. Rate hikes by the Federal Reserve were cited as supportive for the dollar.

The U.S. said that it would begin slapping 25% duties on an additional $16 billion in Chinse goods in two weeks.

The move would be the second time the Trump administration imposed duties on Chinese imports since July. The U.S. levied 25% duties on $34 billion in Chinese goods on July 6. In response, China followed up by imposing duties on the same value of U.S. products. China’s Ministry of Commerce said it had no choice but to respond to the U.S. after the latter “launched the largest trade war in economic history.”   /

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