Investing.com - Gold prices were lower on Wednesday as the dollar strengthened and trade tensions eased.
Comex gold futures for August delivery fell 0.20% to $1,257.40 a troy ounce as of 10:45 AM ET (14:45 GMT).
Trade war worry eased after news that the White House administration istaking a less harsh approach to foreign investment restrictions. President Donald Trump wants Congress to pass and updated Committee on Foreign Investment in the United States (CFIUS) to protect domestic technology and won’t invoke a national emergency law on China, according to a senior administration official.
Investors had been on edge in recent days over fear that Trump would limit foreign investment into U.S. technology companies in the latest trade war move.
Traders often turn to gold in times of political uncertainty, as the precious metal is often considered a safe haven from the impact of geopolitics but gold has struggled amid the latest political risks.
Meanwhile the U.S. dollar was higher. 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, rising 0.34% to remain near one year highs of 94.68.
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 0.15% to $16.225 a troy ounce. Among other precious metals, Platinum Futures fell 1.91% to $858.00 while Palladium Futures decreased 0.94% to $945.70 an ounce. Copper futures gained 0.18% to $3.021 a pound.