Investing.com – Gold prices hovered above fresh seven-month lows Friday, as a weaker dollar failed to lift sentiment, while other metals steadied as trade war concerns eased.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $5.30, or 0.43%, to $1,241.30 a troy ounce.
Gold prices resumed their decline and remained on track for their lowest settlement in nearly two weeks as easing trade-war concerns offset the dollar's retreat against its rivals from a two-week high.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.01% to 94.58, but remained well below its intraday of high of 95.00.
Dollar-denominated commodities such as gold are sensitive to moves in the dollar. A rise in the dollar makes gold more expensive for holders of foreign currency, reducing demand for the precious metal.
Downside momentum in other metals was somewhat limited by easing trade-war concerns as traders brushed off the possibility of an uptick in China-U.S. trade tensions, despite data showing China's surplus with the U.S. rose to record $29 billion.
The sharp uptick in exports, which significantly boosted the surplus, was said to be unsustainable, and likely the result of Chinese exporters rushing shipments before U.S. tariffs went into effect in the first week of July.
Copper prices, fell 0.07% to $2.78, while zinc prices settled 0.08% lower at 2,581.25
Aluminium prices fell 0.17% to 2,039.75, while Nickel futures settled nearly 2% lower at 13,955.00.
Silver futures fell 0.98% to $15.82 a troy ounce, while platinum futures fell 1.89% to $830.40 to near 10-year lows on expectations of lower demand from the automotive sector amid potential tariffs that could hurt carmakers.