Breaking News
0

Gold Prices Languish at 2018 Lows Despite Dollar U-Turn

CommoditiesJun 15, 2018 01:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com – Gold prices continued to languish at year-to-date lows despite the dollar turning negative and rising geopolitical tensions amid growing fears of a U.S.-China trade war.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $27.60 or 2.11%, to $1,280.70 a troy ounce.

Gold fell as the dollar posted a fresh 2018 high before profit taking sparked a reversal pressuring the greenback lower.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.13% to 94.80 after trading as high as 95.15.

The return of trade tensions, meanwhile, did little to spark demand for safe-haven gold after President Trump said the U.S. would impose a 25% tariff on billions of dollars of Chinese goods, and threatened further tariffs if Beijing decided to retaliate.

Beijing ignored Trump's threats, however, vowing to immediately impose penalties of the "same scale" on American goods, raising the prospect of a tit-for-tat trade war between the world's two largest economies.

Some cited gold's breach of a key technical level around $1,307 as the catalyst for the selloff, which emerged just days after the Federal Reserve signalled a faster pace of rate hikes for this year and the next.

The odds of a fourth rate hike at the Fed's December meeting has soared to 51.1% from 33.8% the previous week, according to Investing.com's Fed Rate Monitor Tool.

In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.

In other precious metal trade, silver futures fell 4.44% to $16.50 a troy ounce, while platinum futures fell 2.62% at $887.00 an ounce.

Copper fell 2.42% to $3.14.

Gold Prices Languish at 2018 Lows Despite Dollar U-Turn
 

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