Gold prices trade at 1-year highs on beleaguered U.S. dollar
Gold prices traded at one-year highs on Friday, helped by a broadly weaker U.S. dollar and lingering concerns over North Korea tensions with the rest worldwide.
Comex gold futures improved by $9.95 or about 0.74% at $1,360.34 a troy ounce by 03:00 a.m. ET (07:00 GMT), the highest since August 2019.
The U.S. dollar came under pressure as soon as the U.S. Labor Department reported on Thursday that initial jobless claims rose greater than anticipated to 298,000 yesterday.
Sentiment over the greenback seemed to be vulnerable as markets monitored the continuing development of Hurricane Irma, that is set to hit Miami over the week-end.
Market participants perceived to shrug off remarks by The big apple Federal Reserve President William Dudley asking the U.S. central bank to carry on gradually raising rates seeing that low inflation should rebound.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.38% at 91.14, the minimum level since January 2019.
Gold is understanding of moves inside the dollar. A weaker dollar makes gold more affordable for holders of foreign money.
Investors remained cautious amid speculation North Korea could launch an intercontinental ballistic missile on Saturday.
U.S. President Donald Trump said on Thursday he would rather have never to use military action against Pyongyang to counter its nuclear and missile threat but that if he did it might be a “very sad day” for your North-Korean leadership.
Elsewhere to the Comex, silver futures gained 16 cents or about 0.87% to $18.27 a troy ounce.