Investing.com – Gold prices remained near session highs as a weaker dollar underpinned demand for the yellow metal, while other metals traded lower ahead of looming U.S.-China tariffs set to take effect Friday.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $4.40, or 0.35%, to $1,257.90 a troy ounce.
A weaker dollar, and the prospect of an increase in U.S-China trade tensions propped up demand for the yellow metal as traders braced for the impact of U.S. tariffs on $34 billion worth of imported Chinese goods expected to take effect at midnight.
China's 25% tariffs on $34 billion of U.S. goods are also expected to kick in on Friday, raising the prospect of a messy trade war between the world's two largest economies that could stifle economic growth.
Gold prices traded in a narrow range, however, as traders awaited the release of the Federal Reserve's minutes due 2 PM ET for further clues on central bank's monetary policy outlook.
In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.
While gold prices tend to benefit in times of economic turbulence, other metals continued to trend lower, as a trade war is expected to stifle demand.
Copper prices sunk to its lowest in more than one year, falling 2.98% to $2.83, and zinc prices fell 0.46% to 13-month low of 2,695.00.
Aluminium prices, fell 0.61% to 2,048.75 despite investor expectations for a decline in output following a statement from China pledging to shut down some smelters in a bid to firm up environment control.
Silver futures rose 0.32%% to $16.10, a troy ounce while platinum futures lost 0.35% to $843.30.