Investing.com – Gold prices fell in Asia on Tuesday with tensions on the Korean peninsula eyed after fresh U.N. economic sanctions against Pyongyang that were seen as weaker than expected, or pushed, by the U.S.
Comex gold futures on the Comex fell 0.43% to $1,329.96 a troy ounce.
“The new UN sanctions on oil exports to North Korea are relatively moderate in scope compared to the original US proposal regarding oil exports, and would be unlikely to have much impact on the operations of the North Korean military,” said IHS Markit in a note to client.
“Under the new sanctions resolution passed by the UN Security Council on 11 September, UN members would only need to cap oil exports to North Korea at the average level over the past 12 months, although the new UN resolution also bans exports of natural gas liquids and condensates and caps exports of refined petroleum products to North Korea at 2 million barrels per year for the 2018 calendar year and 500,000 barrels for the last quarter of 2017.”
Overnight, gold prices remained on the downside on Monday, as concerns over the impact of Hurricane Irma and tensions with North Korea continued to subside.
The dollar regained some strength following an official downgrading of Hurricane Irma’s strength to Category 1, as the storm pummeled Florida over the weekend after devastating much of the Caribbean.
Massive storm surges have flooded areas across South Florida, while downed trees and power lines have left over 2 million residents without power.
U.S. President Donald Trump said on Saturday that he will ask Congress to speed up its efforts to overhaul the U.S. tax code, citing the potential impact of Hurricane Irma.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies hit a 32-month low of 90.99 on Friday.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Market participants had been worried about a potential North Korean missile test on Saturday, to mark the anniversary of the founding of the nation.
However, investors were relieved to learn that Pyongyang chose to observe the 69th anniversary of its founding only by honoring the scientists behind the massive nuclear test it conducted last week.