Gold moves higher on weaker dollar and geopolitical tension

By Investing.com / April 17, 2017 / in.investing.com / Article Link

Investing.com - Gold prices rose in European trade on Monday as a weaker dollar and tensions on the Korean peninsula supported demand.

On the Comex division of the New York Mercantile Exchange, gold for June delivery gained 0.16% to $1.290.50 a troy ounce.

Gold also benefitted Monday from a weaker dollar as the greenback felt pressure from Friday's release of weak U.S. retail sales and inflation data.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, fell 0.30% at 100.19 by 4:02AM ET (8:02GMT).

A weak dollar usually supports gold prices, as it bolsters the metal's appeal as an alternative asset and makes dollar-priced commodities more attractive to holders of other currencies.

Geopolitical tension surrounding North Korea also remained on markets' radar, supporting demand for safe haven assets, a day after the country's attempted launch on Sunday of a ballistic missile failed.

The U.S. is working with allies and China on responses to the failed test, U.S. President Donald Trump's national security adviser said on Sunday.

Elsewhere in metals trading, silver was up 0.43% at $18.590 a troy ounce.

Platinum slipped 0.03% at $977.10 a troy ounce, while palladium lost% to $794.40 a troy ounce. Copper gained 0.60% to $2.586 a pound.

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