Bullion prices ended higher at Comex on Monday, 27 AUgust 2018. 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. On Monday, 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.

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 leading dollar index 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.

September silver rose 6.5 cents, or 0.4%, to $14.859 an ounce. The contract climbed 1.7% Friday and was up 1.1% for last week.

Gold had logged a gain of about 2.5% last week, 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, which was the sharpest weekly slump since February. 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.

Rates were in focus again recently when Federal Reserve Chairman Jerome Powell, at the annual Fed symposium in Jackson Hole, Wyoming, last week said gradual U.S. interest-rate hikes remain appropriate and there was no risk to the economy overheating.