Gold futures settled with loss on Thursday after a Federal Reserve rate cut failed to stem strength in the U.S. dollar
Prices for the metal, however, climbed in electronic trading Thursday afternoon, as U.S. President Donald Trump's latest threat of additional tariffs on Chinese goods lifted demand for the haven metal.
In a tweet, Trump said that “trade talks are continuing, and during talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 billion dollars of goods and products coming from China into our Country.”
Gold had already recovered much of the losses from Wednesday, but “the acceleration towards $1450 was due to the President’s tweet regarding the 10% tariff on September 1st,” said Jeff Wright, executive vice president of GoldMining Inc.
“Momentum is behind gold,” he said.
Gold for December delivery on Comex was up at $1,449.50 an ounce after tapping high of $1,451.60 in electronic trading. Prices haven’t traded at levels this high since May 2013.
Prices had fallen by $5.40, or 0.4%, to settle at $1,432.40 an ounce after trading as low as $1,412.10. That marked the lowest intraday level since July 25, according to FactSet data.
Source : Marketwatch