Breaking News
0

Gold Falls, Losing out to Dollar as Trade War Hedge

CommoditiesFeb 11, 2019 16:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - The luster of the gold isn't powerful enough for those seeking a hedge to the trade war.

Gold prices fell back on Monday, settling down for the sixth time in seven sessions, as investors turned again to the relative safety of the dollar amid the drag in U.S.-China trade negotiations.

Bullion and gold futures got a reprieve on Friday, outshining the dollar, as the U.S. and China hold talks ahead of the March 1 deadline for Beijing to strike a trade deal with Washington or risk having tariffs on $200 billion of imports raised to 25% from 10%.

"Currently, the price of gold is under pressure as the dollar Index continues to rally versus other world currencies," said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas.

"If the rally continues, technical support levels in the price of gold will be tested," Pehowich added. "Spot support levels will be the previous resistance levels at $1,303."

The spot gold contract, reflective of trades in physical bullion, was down $5.66, or 0.4%, to $1,308.60 per ounce by 3:39 PM ET (20:39 GMT).

In futures trading, gold's benchmark April contract on the Comex division of the New York Mercantile Exchange settled down $6.60, or 0.5%, at $1,311.90 per ounce.

The dollar index, which tracks the greenback against a basket of other major currencies, rose 0.5% to near one-month highs of 96.917.

Both the spot price and futures of gold fell 0.3% last week after declining four consecutive sessions.

The lack of a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping has dampened hopes for a smooth resolution to the U.S.-China trade war, one of the most intense rivalries of this generation. U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will still be in China this week for another round of talks.

Gold futures hit highs above $1,300 for five-consecutive sessions through Jan. 31, peaking at $1,331.10, as investors raised their stakes in the yellow metal amid Fed reassurances that it will be patient with rate hikes.

Palladium remained the world's most valuable traded metal, despite its spot price sliding by $17.85, or 1.3%, to $1,388.10 per ounce.

Spot palladium first traded above gold last month when it hit record highs of $1,440.35 on Jan. 17. Gold's own peaks have been higher in the past, rallying above $1,900 in 2011.

Trades in other Comex metals as of 3:39 PM ET (20:39 GMT):

Palladium futures down $10.75, or 0.8%, at $1,360.45 per ounce.

Silver futures down 11.2 cents, or 0.7%, at $15.70 per ounce.

Platinum futures up $14.30, or 1.8%, at $788.20 per ounce.

Copper futures down 2.3 cents, or 0.8%, at $2.79 per pound.

Gold Falls, Losing out to Dollar as Trade War Hedge
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email