Investing.com - Gold prices were modestly higher on Wednesday, as the U.S. dollar fell as trade war concerns remained in focus.
Comex gold futures for August delivery were up 0.15% to $1,304.20 a troy ounce as of 10:50 AM ET (14:50 GMT).
The U.S. trade deficit fell to a seven-month low in April as exports rose to a record high, showing recent trade disputes between the U.S. and China have had little impact on trade.
Wednesday’s data is just the latest economic reports to bolster expectations that the Federal Reserve will raise interest rates at its meeting June 13.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Still, trade negotiations remain in focus, as China and the U.S. have come head-to-head in recent months over trade and tariff negotiations, prompting worry of a full-scale trade war.
Meanwhile the European Union announced retaliatory tariffs against the U.S. would go into effect in July, after President Donald Trump went ahead with planned metal tariffs against key U.S. allies.
Gold was supported by a fall in the greenback. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 93.50, falling 0.37%.
Gold is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Elsewhere on the Comex, silver futures were up 1.04% to $16.715 a troy ounce. Among other precious metals,Platinum Futures rose 0.65% to $907.30 while Palladium Futures increased 1.11% to $1,006.50 an ounce. Copper futures gained 1.36% to $3.242 a pound.