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Gold falls from an 11-week high, driven by the dollar’s rally and profit-taking sales

UNITED STATES (OBSERVATORY) –¬†Gold prices fell on Thursday from an 11-week high as the dollar rallied and investors took profit-taking sales, but mounting tensions over a military escalation in Syria and continued concern over a trade war with China were weighing precious metal losses.

Spot gold fell 1.2 percent to $ 1336.51 an ounce in late US trading, after four consecutive sessions of gains.

Gold futures for June delivery fell 1.3 percent to settle at $ 1341.90 an ounce.

The dollar index rose against a basket of currencies, putting pressure on commodities denominated in US currency.

Gold is usually used as a store of value in times of financial and political uncertainty.

President Donald Trump warned Russia on Wednesday of imminent military action in Syria in response to an alleged poison gas attack, saying the missiles were “coming” and criticizing Moscow for backing Syrian President Bashar al-Assad.

The precious metal also received support from continuing fears of a US-China trade war.

The Chinese Ministry of Commerce said on Thursday that China would not hesitate to respond if the United States stepped up its trade dispute with Beijing, asserting that President Xi Jinping’s commitment to reduce import duties was not a concession to the United States.

Among other precious metals, spot silver fell 0.8 percent to $ 16.49 an ounce after hitting a two-month high of $ 16.87 in the previous session.

Platinum rose 0.2 percent to $ 928.40 an ounce, while palladium rose 0.1 percent to $ 965.50 an ounce.

Palladium jumped more than 6 percent this week on fears that supplies from Russia, the biggest metal producer, would be hit by US sanctions.