Gold prices were lower Monday as gains in U.S. stock futures and a firmer dollar dampened demand for bullion, despite simmering trade tensions between the U.S. and China.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell $3.20 or 0.24 percent to $1,333.00 a troy ounce by 08:15 AM GMT.
U.S. stock futures pointed to a higher open on Wall Street Monday after a deep selloff on Friday, as fears over the prospect of a trade war rattled investors.
Worries that protectionist trade policies might result in a full-blown trade war have fueled fears over the impact on the global economy and U.S. growth, but investors are hopeful that negotiations will result in a compromise.
U.S. President Donald Trump said on Twitter on Sunday that China would take down its trade barriers because it was “the right thing to do.”
China said Friday that it was prepared to hit back “forcefully” if the Trump administration followed through on a threat to impose $100 billion in additional tariffs on imports.
Investor sentiment was also boosted by reports that North Korea had told the U.S. for the first time that it was prepared to discuss denuclearization when their leaders meet.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.1 percent to 89.92.
Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.
The dollar showed little reaction following reports of a suspected U.S. missile attack on a major Syrian air base. Washington denied it had launched any air strikes against the country.
In other precious metal trade, silver futures were little changed at $16.355 a troy ounce, while platinum futures rose 0.51 percent to $922.20.
Among base metals, copper futures were up 0.28 percent to $3.067 a pound.