Gold reverses downturn as Trump disbands business advisory bodies

Source: Xinhua| 2017-08-17 04:40:22|Editor: yan
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CHICAGO, Aug. 16 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled higher on Wednesday as controversy over President Donald Trump's response to Charlottesville violence led to the disbanding of two White House business advisory bodies.

The most active gold contract for December delivery rose 3.2 U.S. dollars, or 0.25 percent, to settle at 1,282.90 dollars per ounce.

Gold futures were trading in the negative territory for most of the session. However, when Trump announced that he was disbanding both the Manufacturing Council and Strategy and Policy Forum as business leaders resigned from the council over his remarks on Charlottesville violence, haven demand prevailed and prompted a late-session reverse.

Seeing more business leaders of the Manufacturing Council resigned, Trump tweeted around noon "Rather than putting pressure on the business people of the Manufacturing Council & Strategy & Policy Forum, I am ending both. Thank you all!"

Meanwhile, the U.S. dollar index fell 0.07 percent to 93.77 as of 1852 GMT and continued its downturn after gold settlement. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes down, gold futures will rise.

As for other precious metals, silver for September delivery went up 22.6 cents, or 1.35 percent, to close at 16.94 dollars per ounce. Platinum for October rose 7.1 dollars, or 0.73 percent, to settle at 974.5 dollars per ounce.