WHAT A DOLLAR GETS YOU AROUND THE WORLD What Is The Price Of 1 Dollar

WHAT A DOLLAR GETS YOU AROUND THE WORLD

Gold settles higher as dollar falls in wake of U.S.-Mexico trade pact

Silver, copper futures move up for a second straight session

Gold prices settled higher on Monday, extending their gain from last week, as the U.S. dollar fell following news of a trade agreement between the U.S. and Mexico.

“The precious metal advanced on the greenback as NAFTA deal optimism cancelled out some of the trade war concerns in August,” said Alfonso Esparza, senior currency analyst at OANDA.

U.S. President Donald Trump announced a preliminary deal

with Mexico on issues that have held up renegotiation of the North American Free Trade Agreement for more than a year.

“Investors interpreted the deal as a softening of trade tensions that have dominated the market,” said Esparza, in emailed commentary. “Risk appetite was higher at the start of the week as the agreement with Mexico could lead to a softer stance on trade from the Trump administration.”

Against that backdrop, the precious metal and the U.S. currency continued an inverse relationship Monday, with December gold

up $2.70, or 0.2%, to settle at $1,216 an ounce as a

fell 0.4% to 94.768. Gold often trades higher when the dollar weakens, and vice versa, because the precious metal is traded in the greenback.

What Is The Price Of 1 Dollar,
was down 1% for last week What Is The Price Of 1 Dollar , the first weekly rise in seven. The ICE U.S. Dollar Index, the popular indexed measure of the buck against six rivals, was down 1% for last week,

. It was still up 0.3% for August so far as rising interest rates increase the opportunity cost of holding nonyielding gold, while boosting the dollar.

Federal Reserve Chairman Jerome Powell, at the annual Fed symposium in Jackson Hole, Wyo.,

last week said gradual U.S. interest-rate hikes remain appropriate and there was no risk to the economy overheating. He also said he was prepared to do “whatever it takes” if inflation becomes unanchored to the upside or downside “or should crisis threaten again.”

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Gold’s rebound above $1,200 is “a direct consequence of the words of Fed Governor...Powell, who talked of a gradual rate increase for 2019, fueling expectations of a softening of the U.S. monetary policy,” said Carlo De Casa, chief analyst at U.K.-based online broker ActivTrades, in an emailed note.

Meanwhile, from a technical perspective, analysts had been watching gold’s ability to hold the $1,200 line after the market had tilted decidedly bearish based on short positions, or bets that an asset’s price will fall.

“The fact that market participants had previously been very pessimistic towards gold is also likely to have contributed to the price rise [last week],” said analysts at Commerzbank, led by Carsten Fritsch, in a note. They sited Commodity Futures Trading Commission stats that showed net short positions were further expanded to 90,000 contracts in the week to Aug. 21.

“As in the weeks before, it was mainly a question of short positions being increased while longs remained virtually unchanged. Some of the short positions are likely to have been covered at the end of last week, especially after the price exceeded the $1,200 mark,” the analysts said.

What Is The Price Of 1 Dollar,
Among exchange-traded funds, Among exchange-traded funds What Is The Price Of 1 Dollar