Gold Rallies as U.S. Dollar Struggles for Direction

By Investing.com / April 14, 2018 / in.investing.com / Article Link

Investing.com - Gold rose on Friday, as the dollar wavered around the unchanged mark and Middle Eastern tensions remained in the back of investors’ minds.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched up 0.01% to 89.50 as of 10:32 AM ET (14:32 GMT).

The dollar struggled for direction after rallying on Thursday. The greenback rose after the latest meeting minutes from the Federal Reserve showed that the central bankers were confident in the strength of the economy and rising inflation but was unmoved as trade tensions weighed.

Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.

Comex gold futures for June delivery were up 0.45% to $1,348.00 a troy ounce.

After a Russian diplomat said his country’s forces would shoot down U.S. missiles launched at Syria, U.S. President Donald Trump warned Russia to "get ready” for imminent military action in response to an alleged chemical attack over the weekend.

Trump and his national security aides discussed U.S. option in Syria on Thursday, but he he cast doubts by tweeting that an attack on Syria “could be very soon or not so soon at all.”

Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies.

Elsewhere on the Comex, silver futures were up 0.95% to $16.630 a troy ounce. Among other precious metals, Platinum Futures fell 0.17% to $933.20, while Palladium Futures surged 2.03% to $978.65 an ounce. Copper futures gained 0.02% to $3.064 a pound.