Gold prices climbed Tuesday, scoring their highest settlement in two-and-a-half weeks, as the U.S. dollar saw a sharp decline.
U.S. stocks were mixed, though gave up most of their earlier gainscontributing to the yellow metals investment appeal even as concerns surrounding a potential trade war and tensions between North and South Korea appeared to ease.
gained $15.30, or 1.2%, to settle at $1,335.20 an ouncethe highest finish since Feb. 16. The contract has been volatile in recent days considering that gold prices had settled at their lowest levels of the year just last Thursday and recorded the first monthly loss, in February, since October.
jumped 37.2 cents, or 2.3%, to $16.784 an ounce.
Read: Silver is poised to outpace gold this year
Among exchange-traded funds, the silver-focused exchange-traded iShares Silver Trust
rose 2%, while the SPDR Gold Shares
traded up 1.1%.
See: Gold ETFs see outflows in February amid price volatility
Softness in the dollar index is helping the precious metal, gold, said Naeem Aslam, chief market analyst with ThinkMarkets. The ICE U.S. Dollar Index
traded down 0.6%. A weaker dollar makes gold priced in the U.S. unit more attractive to investors using another currency.
The dollar weakness is triggered because of the worries around the global trade war, Aslam said. Donald Trump is facing strong political pressure to soften his stance towards his announcements of trade tariffs. If the new form of NAFTA deal is signed and becomes a reality, he may change his mind towards these tariffs.
Gold futures gained initially last week as the threat of a global trade war in the wake of President Donald Trumps plans for U.S. steel and aluminum tariffs and potential retaliation pushed stocks and the dollar lower. The currency tumbled to 16-month lows against the safe-haven Japanese
late last week. The trade-related market churning has underpinned a flight to the perceived safety for assets such as precious metals.
But broader global market trading Tuesday showed some ease for now in the jitters around trade. House Speaker Paul Ryan warned about the potential fallout if Trumps plan to impose tariffs on steel and aluminum imports went ahead part of a show of resistance by some Republicans to the plan.
Read: Trump, trade wars, inflation: Wall Street on edge ahead of February jobs report
Meanwhile, South Koreas presidential office reportedly said the two Koreas will hold their first summit in more than a decade in late April. That comes after North Korean leader Kim Jong Un met with a senior delegation from the South in Pyongyang and said he wanted to write a new history of national reunification for the two countries.
In other trading, May copper
settled at $3.159 a pound, up 1%.
rose 0.9% to $970.60 an ounce and June palladium
rose less than 0.1% to $978.30 an ounce.
Related Topics Metals and Minerals Metal Exchange U.S. Stocks Markets Gold Silver Copper
Quote References GCJ8 +16.90 +1.28% SIK8 +0.39 +2.39% SLV +0.31 +2.02% GLD +1.43 +1.14% DXY -0.42 -0.47% USDJPY -0.01 -0.01% HGK8 +0.03 +0.98% PLJ8 +8.90 +0.93% PAM8 +2.70 +0.28% Show all references
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