Investing.com - Metal prices were mixed Wednesday as gold strengthened, but aluminium fell nearly 1%.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $7.40, or 0.60%, to $1,232.90 a troy ounce, from an intraday low of $1,223.20.
The dollar came under pressure, prompting a bid in safe-havens such as yen, gold and Treasuries ahead of a meeting on trade between President Donald Trump and European Commission President Jean-Claude Juncker this afternoon.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.22% to 94.18.
Gold is sensitive to moves lower in both bond yields and the U.S. dollar. A weaker dollar makes gold cheaper for holders of foreign currency, raising demand, while a fall in U.S. bond yields limits the opportunity cost of holding non-yielding assets such as bullion.
Threats from both sides ahead of the meeting has dented expectations that the talks could mend the rift between the United States and the European Union.
The US has threatened to increase its 2.5% levy on imported cars to 25%, while the EU has threatened to introduce tariffs on $20 billion worth of US goods if the United States follows through with additional tariffs on imported cars.
In the broader metals market, Copper prices rose 0.55% to $2.83, while zinc prices fell 0.53% to 2,589.25.
Silver futures rose 0.64% to $15.62 a troy ounce, while platinum futures rose 0.83% to $842.50.
Aluminium prices fell 0.95% to 2,063.00, while Nickel Futures gained 0.77% to 13,715.00.