Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Rises as Trump Criticizes Fed

Published 07/20/2018, 10:30 AM
Updated 07/20/2018, 10:30 AM
Gold rose on Friday.

Gold rose on Friday.

Investing.com - Gold prices rose on Friday as U.S. President Donald Trump criticized the Federal Reserve for increasing interest rates.

Comex gold futures for August delivery rose 0.47% to $1,229.70 a troy ounce as of 10:29 AM ET (14:29 GMT).

Trump said in an interview on CNBC that he does not approve of how the Fed is approaching monetary policy. The Fed raised rates twice this year and is expected to raise rates at least once more before the end of the year.

St. Louis Federal Reserve Bank President James Bullard responded to Trump’s comments, saying the Fed would not be impacted.

“The [Fed] has a mandate to keep inflation low and stable and obtain maximum employment for the U.S. economy, so people can comment, including the president and other politicians, but it’s up to the committee to try to take the best action we can to achieve those objectives,” he said.

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

Meanwhile, Trump said in an interview on CNBC that he is ready to impose tariffs on $500 billion worth of Chinese goods to the U.S. if China does not back down on its trade policies.

The dollar slumped after Trump's comments. Gold falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.64% to 94.37.

Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were higher on the Comex, with silver futures rising 0.64% to $15.50 a troy ounce. Among other precious metals, Platinum Futures increased 2.91% to $829.80, while Palladium Futures jumped 1.94% to $883.50 an ounce. Copper futures gained 1.91% to $2.747 a pound.

Latest comments

Does gold will go down further in the next week...? Looking for a best buy position...
Interest rates are meaningless to gold in the end. It's the Govt and it's ability to manage.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.