Investing.com – Gold prices slipped on Thursday and continued to hover near a six-month low as traders digest the latest developments in the U.S.-China trade row.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange slipped 0.27% to $1,252.80 a troy ounce by 1:15AM ET (05:15 GMT).
The White House announced on Wednesday that it would not be looking to impose the new 25% new limits on Chinese ownership in U.S. tech-related companies, as reports had suggested earlier in the week. Instead, the government would rely on the newly strengthened Committee on Foreign Investment in the United States, or CFIUS, to deal with concerns.
However, U.S. President Donald Trump’s top economic adviser Larry Kudlow said on Wednesday that the president is not retreating on China.
The dollar held steady against its rivals on Thursday. The U.S. dollar index, which tracks the greenback against a basket of currencies, was little changed at 95.00.
"The dollar may continue to strengthen because of rising U.S. interest rates and yields. That is all the key reason that makes holding gold unatractive," said Helen Lau, analyst at Argonaut Securities.
The Fed is expected to raise interest rates at least four times this year, which will likely dent gold prices.
In other precious metal trade, silver futures fell 0.50% to $16.070 a troy ounce, while platinum futures fell 0.31% at $859.00 an ounce.