Gold Prices Slip as U.S. Dollar Edges Up Amid Renewed China-U.S. Tensions
Gold futures last traded at $1,312.90 on the Comex division of the New York Mercantile Exchange by 1:16 AM ET (06:16 GMT), down 0.1%.
Meanwhile, The U.S. dollar index that tracks the greenback against a basket of other currencies traded near a two-week high on Friday. The index last traded at 96.345, up 0.1%.
Despite today’s fall, bullion prices have now jumped about 13% since touching over 1-1/2-year lows in August. Volatile stock markets, a weaker U.S. dollar and dovish US Federal Reserve were all cited as supporting the precious metal.
On Thursday, U.S. President Donald Trump said he will not meet his Chinese counterpart Xi Jinping before their countries’ March 1 deadline to achieve a trade agreement, raising uncertainties over the trade deal between the U.S. and China.
His comments came after White House advisor Lawrence Kudlow Traders told Fox news this week that ‘sizable distance’ remains in US-China trade talk. Gold prices rose on Thursday following Kudlow’s comments but gave up some of its gains today.
Trump has threatened to increase U.S. tariffs on Chinese imports if the two sides do not reach a deal before the March deadline. Another round of talks is scheduled for next week in Beijing.