Gold prices inched higher on Friday as trade tensions resurfaced and the dollar fell for a third day amid bets the Federal Reserve will embark on a series of rate cuts in coming months.
Spot gold rose 0.3 percent to $1,407.61 per ounce while U.S. gold futures were up 0.2 percent at $1,409.35 an ounce.
Trade worries lingered after U.S. President Donald Trump accused China of breaking a promise it made on buying agricultural products from American farmers.
“They have not been buying the agricultural products from our great Farmers that they said they would,” the president said on Twitter. “Hopefully, they will start soon.”
Fed Chair Jerome Powell indicated on Thursday that the U.S. central bank is prepared to cut interest rates to keep the economy in good shape.
He did not specifically state that a rate cut could be coming at the July meeting, but investors took his two days of testimony as strong evidence that it will occur.
The material has been provided by InstaForex Company – www.instaforex.com