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Gold Inches Up as Syria Tensions Weigh

Published 13/04/2018, 09:41
© Reuters.  Gold was higher on Friday amid geopolitical tensions.
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Investing.com - Gold was slightly higher on Friday, as tensions in the Middle East rose and the risk-adverse precious metal became more attractive to investors.

Comex gold futures for June delivery were up 0.17% to $1,344.20 a troy ounce as of 4:41 AM ET (8:41 GMT).

After a Russian diplomat said his country’s forces would shoot down U.S. missiles launched at Syria, U.S. President Donald Trump warned Russia to "get ready” for imminent military action in response to an alleged chemical attack over the weekend.

Trump and his national security aides discussed U.S. option in Syria on Thursday, but he cast doubts by tweeting that an attack on Syria “could be very soon or not so soon at all.”

The lower price of the U.S. dollar also bolstered bullion.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.10% to 89.40.

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.

The dollar was lower after rallying on Thursday. The greenback rose after the latest meeting minutes from the Federal Reserve showed that the central bankers were confident in the strength of the economy and rising inflation but fell on trade tensions.

Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.

Elsewhere on the Comex, silver futures were up 0.38% to $16.535 a troy ounce. Among other precious metals, Platinum Futures rose 0.19% to $936.60, while Palladium Futures increased 1.48% to $973.30 an ounce. Copper futures gained 0.64% to $3.083 a pound.

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