Investing.com – Metal prices were mostly lower Thursday as a higher dollar weighed forcing gold to fresh session lows.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $7.10, or 0.58%, to $1,222.70 a troy ounce, from an intraday high of $1,235.20.
The dollar rose sharply on the back of a retreat in the euro as European Central Bank President Mario Draghi reiterated that rates would remain on hold until next year. The stronger dollar pressured gold to erase its gains from the prior day.
Falling safe-haven demand, meanwhile, accelerated downside momentum in the precious metal after the United States and Europe struck a truce on tariffs, agreeing to work together to ease trade restrictions.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.50% to 94.45.
The greenback was also helped by expectations for bullish second-quarter U.S. economic growth due Friday, which would strengthened the Federal Reserve's resolve to move ahead with further rate hikes.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest.
Further rhetoric on the China-U.S. trade front, meanwhile, kept gains in the wider metals market in check.
China said it was ready to retaliate against any increase in U.S. tariffs on Chinese imports -- be it $16 billion or $200 billion -- an official in Beijing said, according to Bloomberg.
Copper prices fell 12% to $2.82, while zinc prices were flat at 2,589.25.
Aluminium prices rose 0.25% to 2,068.25, while Nickel futures gained 0.64% to 13,802.00.
Silver futures fell 0.73% to $15.48 a troy ounce, while platinum futures fell 0.70% to $833.80.