Gold Prices Hit Day’s Highs on Softer Dollar

16/04/2018 14:13:09 Commodities

Gold prices rose to the day’s highs on Monday, propelled higher by the softer dollar which weakened as fears of an escalating conflict in Syria faded.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose $3.90 or 0.29% to $1,351.90 a troy ounce by 10:08 AM ET (14:08 GMT).

Market sentiment was buoyed by relief that the missile strikes on Syria in response to a suspected chemical-weapon attack on civilians did not prompt a response from Russia, Syria’s main ally.

Investors remained cautious as the U.S. prepared to announce a fresh round of economic sanctions on Russia related to its involvement in Syria’s use of chemical weapons.

The dollar was also pressured after President Trump accused Russia and China of devaluing their currencies while the U.S. raises interest rates in a Twitter post.

“Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!” Trump said.

The dollar shrugged off data showing that U.S. retail sales rebounded 0.6% in March, snapping three months of declines.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.42% to 89.13. A weaker dollar makes the dollar-denominated metal less expensive for holders of other currencies.

In other precious metal trade, silver futures added on 0.43% to trade at $16.73 a troy ounce, while platinum futures were up 0.46% to trade at $937.50.

Among base metals, copper futures advanced 1.27% to $3.111 a pound.