Gold Prices Fall as Trade Tariffs Begin

Работник красноярского завода Красцветмет взвешивает слиток золота 12 апреля 2012 года. Золотовалютные резервы РФ достигли минимальных значений с начала октября 2009 года, потеряв за неделю $7,2 миллиарда, в основном, из-за возврата Центробанком валюты в рамках операций "валютный своп", а также отрицательной переоценки валют и золота. REUTERS/Ilya Naymushin

Gold Falls as Trade Tariffs Begin
Gold Falls as Trade Tariffs Begin | Jul 06, 2018 05:07AM ET

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Gold was lower on Friday. – Gold prices were lower on Friday as the U.S. dollar weakened and U.S. trade tariffs against China went into effect.

Comex gold futures for August delivery decreased 0.21% to $1,256.20 a troy ounce as of 6:06 AM ET (10:06 GMT).

U.S. tariffs on $34 billion worth of Chinese goods went into effect at 12:01 AM ET (04:01 GMT) on Friday, with additional tariffs on another $16 billion expected to go into effect in two weeks. Meanwhile U.S. President Donald Trump has given instructions to identify a further $300 billion in possible Chinese goods.

China previously said it would retaliate with tariffs on $34 billion of American goods, including agricultural products, crude imports, and vehicle products.

The precious metal was also held back by the Federal Reserve expressing concerns about the trade war, according to minutes from its last policy meeting in June.

“Most (Fed policymakers) noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects,” according to the minutes.

Meanwhile the dollar was lower. Gold normally rises as the dollar falls, as the precious metal 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, inched down 0.14% to 94.00.

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

Elsewhere on the Comex, silver futures were down 0.17% to $16.070 a troy ounce. Among other precious metals, Platinum Futures rose 0.25% to $843.50 while Palladium Futures decreased 0.34% to $939.50 an ounce. Copper futures lost 0.07% to $2.824 a pound.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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