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Gold Rises on Soft U.S. Dollar, Political Woes

Published 22/08/2018, 15:25
Gold was higher on Wednesday.
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Investing.com - Gold prices were higher on Wednesday, as political uncertainty weighed on the U.S. dollar and investors looked ahead to meeting minutes from the Federal Reserve.

Comex gold futures for December delivery rose 0.20% to a one-week high of $1,202.40 a troy ounce as of 10:25 AM ET (14:25 GMT).

The minutes from the Fed’s latest policy meeting come out at 2:00 PM ET (18:00 GMT), which investors will look to for clues on future monetary policy.

The central bank held interest rates unchanged at its last meeting, giving an upbeat assessment of the world's biggest economy, as it stays on course to gradually lift interest rates.

Two more rate hike increases are expected before the end of the year.

The precious metal was also bolstered by a softer greenback. The dollar was pushed lower by political fallout, as Trump's former personal lawyer Michael Cohen pleaded guilty to eight charges, right before Trump's former campaign chairman Paul Manafort was found guilty of eight criminal counts.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched down 0.07% to 95.06.

Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were mixed on the Comex, with silver futures down 0.45% to $14.700 a troy ounce. Among other precious metals, Platinum futures fell 0.14% to $791.90, while Palladium futures increased 0.30% to $912.70 an ounce. Copper futures slumped 0.58% to $2.680 a pound.

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