Investing.com – Gold prices rose on Wednesday, hitting a one-week high as dollar continued to weaken on mounting concerns over U.S. protectionism.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange gained $2.56, or 0.20%, to $1,329.70 a troy ounce by 12:42am ET.
The dollar dived further against other currencies in Asia on Wednesday following news from the White House that hampered the investors’ confidence in the greenback, as U.S. president Donald Trump unexpectedly fired the Secretary of State Rex Tillerson and reportedly prepared to impose tariffs on China. The news followed the resignation of chief economic adviser Gary Cohn last week.
The U.S. dollar index that tracks the greenback against a basket of six major currencies slumped 0.16% to 89.56, the lowest of this week.
A softening dollar makes bullion, which is often used as an alternative investment during times of political uncertainty, relatively cheaper for holders of other currencies.
Asian equities retreated on Wednesday following overnight weakness in U.S. stocks amid fears of rising U.S. protectionism. Japan’s Nikkei traded 0.9% lower, while the Shanghai Composite and Shenzhen Component both slipped close to 1%.