Investing.com - Gold prices were higher on Tuesday as the greenback fell and trade tensions lingered.
Comex gold futures for August delivery surged 1.12% to $1,255.70 a troy ounce as of 11:01 AM ET (15:01 GMT).
Trading is expected to be thin ahead of the U.S. independence day holiday, with the U.S. stock market closing early at 1:00 P.M. ET (17:00 GMT).
Gold was bolstered by a weaker U.S. dollar. 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, fell 0.20% to 94.41.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Meanwhile trade tensions remained, with the U.S. set to block China Mobile from offering services in the U.S. market, citing possible national security risks. The move comes just days before the U.S. is set to impose tariffs on $34 billion worth of Chinese goods on Friday.
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.
Elsewhere on the Comex, silver futures were up 1.45% to $16.065 a troy ounce. Among other precious metals, Platinum Futures rose 3.80% to $844.30 while Palladium Futures increased 0.64% to $940.40 an ounce. Copper futures lost 0.75% to $2.922 a pound.