Gold prices headed higher during the New York trading session on Wednesday as traders continued to worry about global trade tensions, and how the disputes would impact global currencies, specifically the dollar. Because gold is closely linked to the dollar, a weaker greenback makes gold cheaper for other nations, which could increase demand.
Later today European Commission President Jean-Claude will be meeting with U.S. President Donald Trump in an effort to smooth out the wrinkles in the transatlantic trade relationship after recent tensions have weakened the relationship between the regions. European Union Trade Commissioner Cecilia Malstrom will also attend the meeting.
Gold was trading up 0.52 percent as of 2:57 p.m. EST, to $1,231.90 per ounce. Silver was also trading higher, up 0.61 percent to $15.615 per ounce, a touch below its 8-day high of $15.63. The Industrial and Commercial Bank of China (ICBC) expects gold to trade at an average of $1,260 per ounce in the third quarter of 2018, and $1,300 in the fourth quarter, Reuters reported. Rising interest in gold can be measured by interest in gold trading ETFs (exchange traded funds). The most popular gold ETF, the SPDR Gold Trust, is up over 1 percent since July 18, a clear sign that interest in the precious metal has increased lately.
On the oil markets, U.S. WTI futures were also up significantly during the New York session, trading up 1.04 percent to $69.23 per barrel with less than two hours to go before the session’s close. Brent futures were up 0.64 percent to $73.91 per barrel.