WASHINGTON (dpa-AFX) - Gold futures settled lower on Friday as the dollar climbed higher amid rising concerns the tariff hike moves by the U.S. President Donald Trump will result in a prolonged trade war and hurt global economic growth.
The dollar climbed to 107.60, gaining about 0.35%, rising for a third straight session as traders grappled with U.S. President Donald Trump's new tariff threats.
Gold futures for March settled lower by $46.40 or about 1.61% at $2,836.80 an ounce.
Silver futures for March closed down $0.582 or 1.83% at $31.219 an ounce, while Copper futures for March dropped to $4.5160 per pound, down $0.0640 or 1.4% from previous close.
China vowed to take 'all necessary countermeasures and defend its legitimate rights and interests' after Trump said he would impose an additional 10 percent tariff on Chinese imports, intensifying a brewing trade war between the world's two largest economies.
The additional tariff will come into effect on Tuesday alongside sweeping 25% levies on Canadian and Mexican imports.
If is feared that the U.S. trade war may hurt global growth, worsen inflation and possibly spark recessions in some countries.
In economic news, the Commerce Department said the annual rate of growth by the PCE price index slowed to 2.5% in January from 2.6% in December, which also matched expectations.
Excluding food and energy prices, the core PCE price still climbed by 0.3% in January after edging up by 0.2% in December. The increase by core prices was also in line with estimates.
The annual rate of core PCE price growth slowed to 2.6% in January from 2.9% in December, which also matched expectations.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income grew by 0.9% in January after rising by 0.4% in December, while personal spending dipped by 0.2% in January after climbing by 0.8% in December.
A report released by MNI Indicators said its Chicago business barometer shot up to 45.5 in February from 39.5 in January. Economists had expected the Chicago business barometer to show a much more modest increase to 40.6.
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