Trade War Fears Pressure Metals Prices

March 08, 2018 / www.4-traders.com / Article Link

By Ira Iosebashvili

Gold prices fell Wednesday, as investors locked in recent gains on the metal ahead of key U.S. economic data later in the week.

Gold for April delivery was down 0.6% at $1,327.60 a troy ounce on the Comex division of the New York Mercantile Exchange.

Prices for gold, a popular destination for nervous investors, hit $1,342 a troy ounce Tuesday evening after economic adviser Gary Cohn's resignation from the White House stoked worries about the impact of steel and aluminum tariffs on global growth.

On Wednesday, however, investors turned their focus to Friday's U.S. unemployment data. A strong number would bolster the case for the Federal Reserve to raise interest rates at a faster clip this year, weighing on gold, which struggles to compete with yield-bearing assets when rates rise.

When it comes to gold, "event driven rallies usually have a backlash," said George Gero, a managing director at RBC Capital Markets. "They don't last long and tend to reverse quickly."

In base metals, copper fell 0.7% to $3.1360 a pound.

Write to Ira Iosebashvili at [email protected]

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