Investing.com - Gold prices fell on Friday despite a softer dollar as investors assessed the impact of the latest tit-for-tat in the trade war between the U.S. and China.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange lost $3.8, or 0.31%, to $1,216.1 a troy ounce by 1:45AM ET (05:45 GMT).
The decline in gold was partly triggered by profit taking by investors after two consecutive days of posting gains amid escalating trade tension between the U.S. and China, analysts said.
The Chinese Ministry of Commerce announced a 25% tariff on $16 billion worth of U.S. goods including passenger cars and motorcycles on Wednesday. Beijing’s announcement came after the Trump administration confirmed a list of $16 billion worth of Chinese goods that would be hit with tariffs in the previously day. China’s Ministry of Commerce said in a statement that the U.S.’s decision is “very unreasonable,” and that China has no choice but to retaliate.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, also slipped 0.02% to 95.44 on Friday.
The U.S. currency, which is widely seen as a winner in a U.S.-China trade war, was up about 0.6% overnight and traded near the 13-month high of 95.652.
Markets are looking ahead to the U.S. consumer price inflation (CPI) report for July due later in the day, which is expected to show inflation likely increased 0.2%, after rising 0.1% in June.