Gold prices fell on Tuesday as the safe haven demand for the dollar was boosted by concerns over the pending trade dispute between the U.S. and China.
At 10:25 AM ET (14:25 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange lost $6.80, or 0.55%, to $1,225.80 a troy ounce.
Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.22% to 96.79.
A stronger greenback makes the dollar-denominated metal more expensive for holders of foreign currencies.
The dollar found support from safe haven demand after U.S. President Donald Trump confirmed, in an interview with Fox News, that he was prepared to slap China with billions more dollars in tariffs if no agreement is made between the world’s two largest economies.
However, he did show optimism, insisting that he expects a “great deal” to be reached with China.
The interview followed a Bloomberg report that roiled markets, saying the U.S. is preparing to impose tariffs on the remaining $257 billion of Chinese imports if talks in November between Trump and Chinese leader Xi Jinping do not go well.
The two leaders are due to meet during the Group of 20 leaders summit in Argentina at the end of November.
In other metals trading, silver futures fell 0.86% at $14.485 a troy ounce by 10:25 AM ET (14:25 GMT).
Palladium futures slid 1.54% to $1,062.70 an ounce, while sister metal platinum inched up 0.08% at $837.60.
In base metals, copper traded down 2.06% to $2.682 a pound.
