After posting losses in the previous two sessions, gold futures ended higher on Monday, amid mounting worries about escalating trade tensions between the U.S. and China. The yellow metal was also supported by the dollar’s weakness against most major currencies.
According to reports, the U.S. President Donald Trump may announce new tariffs on goods worth over $200 billion imported into the U.S., today. Last week, media reports had indicated that U.S. and China would hold a fresh round of
talks sometime soon, to find ways to diffuse trade tensions. However, the Chinese government is reported to be considering to reject U.S.’ offer of talks as it isn’t prepared to negotiate with a “gun pointed to its head.
If the U.S. goes ahead and imposes tariffs on Chinese goods, it is very likely that China will retaliate with tariffs on U.S. goods that come into China.
The dollar index was down 0.44 points, or 0.47%, at 94.06, amid trade tensions and rising bond yields.
Gold futures for December ended up $4.70, or 0.4%, at $1,205.80 an ounce. On Friday, gold futures ended down $7.10, or 0.6%, at $1,201.10 an ounce.
Silver futures for December settled at $14.223 an ounce, up $0.081 from previous close.
Copper future for December ended up $0.0050 at $2.6510 pound.