Gold Price Dips As Dollar Firms Up On Trade Worries

New York (Sept 4)  Gold prices drifted lower on Tuesday as the dollar firmed up amid escalating global trade tensions and economic turbulence in emerging markets, particularly in Argentina and Turkey.

Spot gold was down 0.44% at USD1,195.06 an ounce while US gold futures were down 0.54% at USD1,200.20 an ounce.

The dollar advanced with Treasury yields as many expect the Federal Reserve to hike rates in September and again in December.

The dollar is also benefiting from fears of a Chinese slowdown and the emerging market economic crisis.

The Turkish lira, Mexican peso, South African rand and Russian rouble all skidded again today while Italian government bond yields fell back from three-month highs following soothing comments from Italian ministers on forthcoming budget proposals.

US-China trade tensions remained in focus ahead of looming US tariffs on Chinese imports as early as this week.

Meanwhile, talks between US and Canadian negotiators will resume on Wednesday after they failed to reach an agreement last week.

AllianceNews