2018.07.2014:10:00UTC+00Gold Settles Higher After Trump's Remarks On Rate Hikes

Gold prices edged higher on Friday, as the dollar weakened against most major currencies after U.S. President Donald Trump stated his disagreement with the Fed's decision on interest rate hikes.

In the interview with CNBC, Trump also spoke about imposing tariffs on additional $500 billion worth of Chinese goods to the U.S. if China decides not to back down on its trade policies.

The dollar index tumbled on Trump's remarks, and was last seen hovering around 94.25, down 0.73 or 0.76%.

Gold futures for August ended up $7.10, or 0.6%, at $1,231.10 an ounce. However, for the week, gold shed about 0.8%.

Gold futures had ended at $1,225.40 an ounce, a 1-year closing low on Thursday, after plunging to a low of $1,211.70. Silver futures for September were up $0.133 or 0.86% at $15.535 an ounce, while Copper futures were higher by $0.057 or 2.1% at 2.752 per pound.

About Fed's rate decision, Trump said "I'm not thrilled. Because we go up and every time you go up they want to raise rates again. I don't really - I am not happy about it. But at the same time I'm letting them do what they feel is best."

Reacting to Trump's take on rates, St. Louis Federal Reserve Bank President James Bullard said, the Fed would not be impacted as it has a mandate to keep inflation low and stable and obtain maximum employment for the U.S. economy. "People can comment, including the president and other politicians, but it's up to the committee to try to take the best action we can to achieve those objectives," he said.