Gold prices slipped on Tuesday, giving up its earlier progress despite a weaker dollar amid the intensifying trade dispute between China and the U.S.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange slipped $4.40, or 0.33%, to $1,342.50 a troy ounce by 12:00 AM ET (04:00 GMT). The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.66, down 0.03%, extending its losses from an overnight high at 89.78.
Dollar-denominated assets such as gold are susceptible to moves in the dollar – a fall in the dollar makes gold low-priced for holders of foreign currency and thus boost the demand for the precious metal. Gold prices pushed higher earlier in the day as risk animosity accelerated following a selloff in U.S. technology shares and amplified concerns of a full-blown trade war after China slapped new tariffs on U.S. goods on Sunday.
Investors seek out gold as a store of value during times of political or economic uncertainty. In other precious metal trade, silver futures fell 0.8% to $16.540 a troy ounce, and platinum futures slipped 0.21% to $936.60 an ounce. Meanwhile, Asian equities also trade lower on Tuesday, with the Nikkei 225 down 0.7% and the Shanghai Composite and Shenzhen Component both saw the major downfall of more than 1%.