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Gold Falls Moderately As Geopolitical And Economic Risks Ease

Gold futures on the COMEX division of the New York Mercantile Exchange settled lower on Monday as geopolitical and economic risks eased.

The most active gold contract for April delivery fell 3.2 dollars, or 0.24 percent, to settle at 1320.80 dollars per ounce.

American President Donald Trump has announced the imposition of high tariffs on all U.S. steel and aluminum imports, prompting criticism at home and from abroad and resulting in plunge of U.S. stocks. Investors have been worried that a potential trade war with U.S. partners will eventually hurt U.S. economy as well.

However, concerns about counter-measures from other countries have waned to some degree in recent days as a number of countries are seeking exemptions from U.S. tariffs through talks.

Meanwhile, the latest official data show that total non-farm payroll employment increased by 313,000 in February, signaling the strength in U.S. economy.

All the factors have made safe haven asset such as gold less attractive to investors.

On Monday, the U.S. dollar index, a gauge of the greenback against a basket of other major currencies, went down 0.08 percent to 90.04 as of 1636 GMT.

Gold and the dollar typically move in opposite directions. If the dollar weakens, gold futures will either rise or be prevented from sharp fall.

As for other precious metals, silver for May delivery fell 7.2 cents, or 0.43 percent, to settle at 16.536 dollars per ounce. Platinum for April went down 1.30 dollars, or 0.13 percent, to close at 962.90 dollars per ounce.

(www.chinaview.cn 2018-03-13)