Gold Prices Move Higher In Risk-Off Trade
New York (Aug 18) Gold prices moved higher on Friday, hovering close to a recent two-month peak, after a terrorist attack in Spain boosted demand for safe-haven assets.
Comex gold futures were up around $1.95, or about 0.14%, to $1,293.12 a troy ounce by 3:00 AM ET (0700 GMT), not far from a two-month high of $1,298.10 reached late last week.
The precious metal found support after a van rammed into pedestrians in a crowded tourist area of Barcelona on Thursday evening, killing at least 13 people and injuring 100 others. The Islamic State claimed responsibility for the incident. Spanish police said that two men had been arrested so far.
Gold prices were also boosted by a weaker U.S. dollar after eight chief executives quit two business advisory councils on Wednesday in protest over U.S. President Donald Trump's controversial remarks on weekend violence in Virginia. The U.S. President reacted to the departures by disbanding the councils - the American Manufacturing Council and the Strategic and Policy Forum.
White House Economic Adviser Gary Cohn denied rumors of his possible departure late Thursday. However, growing opposition to Trump's positions, including from within his own party, have fueled concerns over the administration's ability to implement its political agenda.
The dollar also remained under pressure after the minutes of the Fed's July policy meeting released on Wednesday showed that members of the central bank remain divided over the need to raise interest rates further this year, citing low inflation.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.11% at 93.54.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere on the Comex, silver futures slipped 0.2 cents, or around 0.13%, to $17.03 a troy ounce.
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