Investing.com - Gold prices were lower on Friday as investors moved away from the bullion amid expectations of another interest rate hike this year, while the G20 summit in Argentina was also in focus.
Comex gold futures for February delivery slipped 0.16% to $1,228.40 a troy ounce as of 4:54 AM ET (9:54 GMT).
Fed meeting minutes released on Thursday showed the central bank is expecting to hike interest rates but did not offer a timeline. Rises in interest rates reduce demand for safe haven assets like gold, which does not generate regular payments the way other investments, like bonds, do.
The prospect of interest rate hikes also boost the dollar, which benefits from higher rates.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched up 0.12% to 96.80.
The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the greenback. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Meanwhile traders are also keeping an eye on trade war developments between the U.S. and China.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet on the sidelines of the G20 summit this weekend. It remains uncertain if the two will actually make a deal, with Trump still planning to implement an increase in tariffs on $200 billion of Chinese goods on Jan. 1.
Other metals were lower on the Comex, with silver futures falling 0.40% to $14.345 a troy ounce. Among other precious metals, Platinum Futures decreased 1.07% to $812.10 while Palladium Futures rose 1.29% to $1,166.20 an ounce. Copper futures fell 0.38% to $2.779 a pound.