Investing.com - Gold prices remained 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 0.16% to $1,256.80 a troy ounce as of 10:24 AM ET (14:24 GMT).
Trade conflict between the two biggest economies in the world began in force on Friday, when U.S. tariffs on $34 billion worth of Chinese goods went into effect at 12:01 AM ET (04:01 GMT), with more tariffs expected in the coming weeks. China has also retaliated with tariffs on $34 billion of American goods, according to Xinhua news. Beijing had previously said it would impose tariffs on U.S. agricultural products, crude imports, and vehicle products.
The precious metal was also held back by a mixed jobs report. The U.S. added more jobs than expected in June, indicating a strengthening economy.
However wage inflation rose less than expected, which could lower expectations for an interest rate increase. The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.
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 0.48% to $16.020 a troy ounce. Among other precious metals, Platinum Futures rose 0.25% to $843.50 while Palladium Futures decreased 0.02% to $942.50 an ounce. Copper futures lost 0.78% to $2.804 a pound.