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​Gold rises as U.S. dollar weakens

CHICAGO
2018-04-17 08:46

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Gold futures on the COMEX division of the New York Mercantile Exchange rose moderately on Monday as the U.S. dollar weakened further.

The most active gold contract for June delivery went up 2.8 dollars, or 0.21 percent, to settle at 1350.70 dollars per ounce.

The U.S. dollar index, a measure of the dollar against a basket of other major currencies, declined 0.41 percent to 89.47 as of 1627 GMT. When the dollar falls, gold futures usually rise as gold, priced in the dollar, becomes less expensive for investors using other currencies.

U.S. President Donald Trump on Monday morning claimed in a tweet that "Russia and China are playing the currency devaluation game as the U.S. keeps raising interest rates. Not acceptable!"

But the allegation was immediately refuted by some American economists.

"Just a few relevant data points: China's yuan has appreciated vs. U.S. dollar by 3.7 percent so far this year and has risen 10.7 percent since Trump took office," tweeted Patrick Chovanec, Managing Director and Chief Strategist at Silvercrest Asset Management.

"The U.S. dollar has fallen by about 1 percent so far this year on a broad trade-weighted bases," he added.

Some others said that maybe Trump just wanted to remind that the strong dollar policy may have become a thing of the past, and his remarks did put pressure on the dollar.

Meanwhile, the Dow Jones Industrial Average rose 189.12 points, or 0.78 percent as of 1637 GMT. When equities post gains, the precious metal will either go down or its rise will be limited, as investors will not necessarily look for a safe haven.

As for other precious metals, silver for May delivery went up 1.9 cents, or 0.11 percent, to settle at 16.677 dollars per ounce. Platinum for July fell 1.3 dollars, or 0.14 percent, to close at 931.80 dollars per ounce.
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