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Gold hovered above $1,480 an ounce Tuesday, consolidating in the wake of last week’s “phase-one” U.S.-China trade deal.
Gold for February delivery GCG20, -0.04% on Comex rose $1.20, or 0.1%, to $1,481.70 an ounce, while March silver SIH20, -0.28% shed 2.3 cents, or 0.1%, to $17.09 an ounce.
Gold lost ground Monday as it lost its haven appeal in the face of a run to another round of records by major U.S. stock indexes. Appetite for riskier assets was spurred after the U.S. and China on Friday announced an agreement on a preliminary trade deal.
“Gold is holding its own in the current market environment characterized by high risk appetite…One supporting factor is probably the U.S. dollar, which depreciated somewhat yesterday,” said Daniel Briesemann, commodity analyst at Commerzbank, in a note.
A weaker U.S. dollar can be a positive for commodities priced in the currency, making them less expensive to users of other currencies. The ICE U.S. Dollar Index DXY, +0.17%, a measure of the currency against a basket of six rivals, was up 0.1% on Tuesday at 97.115.
In other metals trade, March palladium PAH20, -1.15% fell 1.5% to $1,934.40 an ounce, while January platinum PLF20, +0.29% was up 0.2% at $932.80 an ounce.
March copper HGH20, -0.04% was 0.1% lower at $2.808 a pound.
