Geopolitical tensions have caused a rise in gold prices. Gold eased back from its earlier losses on Monday, as a lower dollar and geopolitical tensions bolstered the precious metal.
Comex gold futures for April delivery gained 0.28% to a five-week high of $1,353.70 a troy ounce as of 10:30 AM ET (14:30 GMT).
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.43% to a one-month low of 88.72.
Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies. A weaker dollar has also bolstered demand for gold.
The U.S and China are negotiating trade agreements to give the U.S. access to Chinese markets, according to various media reports.
China has offered to buy more semiconductors from the U.S., as well as opening up the financial services sector to foreign investment, the Financial Times reported.
On Thursday U.S. President DonaldTrump announced tariffs on $50 billion worth of Chinese imports in retaliation for China’s unfair seizure of U.S. intellectual property. China responded by imposing tariffs on $3 billion of American exports, which worried investors of a potential trade war.
Elsewhere on the Comex, silver futures were up 0.83% to $16.720 a troy ounce. Among other precious metals, platinum increased 0.75% to $961.30, while palladium inched up 0.25% to $974.00.