Metals Stocks: Gold suffers third straight daily decline

By

Markets/commodities reporter

News editor

Gold prices moved lower Wednesday, taking aim at their longest streak of session declines in more than a month as a leading dollar index strengthened, adding to its gain for the week and dulling investment demand for the precious metal.

Gold for December delivery GCZ7, -0.29%  fell $3.20, or 0.2%, to $1,329.50 an ounce, pulling back from an intraday high above $1,340. The settlement Tuesday at $1,332.70 was the lowest finish since Sept. 1, according to FactSet. The SPDR Gold Shares ETF GLD, -0.61%  was down 0.5%.

The S&P 500 SPX, -0.03% traded barely lower Wednesday, but that’s after scoring a record close on Tuesday. The ICE U.S. Dollar index DXY, +0.54%  added 0.4%, to 92.26.

Read: Gold bulls are looking for a ‘major breakout’ above $1,400 an ounce

The retreat in gold so far this week followed its finish Friday at its highest since Sept. 6, 2016, for a most-active contract, according to FactSet. The metal gained 1.6% last week, its third straight weekly gain, chiefly driven by concerns that North Korea was preparing to conduct another missile test over the weekend to mark the country’s Foundation Day. The weekend passed without a test. And new sanctions against North Korea agreed by the UN Security Council Monday were not as wide-ranging as the U.S. had originally demanded.

“Naturally there is still plenty of underlying geopolitical risk in the markets at the moment, even if acts of provocation have decreased and become less hostile, and this is likely to put a cap on risk rallies for now,” said Craig Erlam, senior market analyst at Oanda, in a note.

“The longer this period of calm continues, the more relaxed investors will become which will be better for riskier assets, while safe havens will continue to experience unwinding,” he said. “Gold is a perfect example of this having come off its highs while remaining at elevated levels.”

The market’s Federal Reserve wait-and-see game continues with speakers shifting into a blackout commentary period ahead of a policy meeting next week. Data Wednesday showed that U.S. inflation t the wholesale level rebounded, mainly reflecting higher gasoline prices. The producer price index rose 0.2% last month.

The Fed raised interest rates twice this year in response to steady growth and falling unemployment, but persistently soft inflation data have tempered market expectations for another hike before the year. Higher rates also boost the dollar, in which gold is priced.

Among other metals, December silver SIZ7, -0.11%  fell 10 cents, or 0.6%, to $17.790 an ounce, while the iShares Silver Trust ETF SLV, -0.53% fell by 0.8%.

December copper HGZ7, -1.70%  fell 5 cents, or 1.7%, to $2.986 a pound. October platinum PLV7, -0.09%  lost $2.40, or 0.3%, to $984.10 an ounce, after settling under $1,000 on Monday for the first time this month. December palladium PAZ7, -0.64% shed $4.80, or 0.5%, to $938.60 an ounce.

Filed in: Top News Tags: 

You might like:

Mutual Funds Weekly: Stock market bears take a swipe at ETF investors Mutual Funds Weekly: Stock market bears take a swipe at ETF investors
Beat the System: London’s Uber ban has nothing to do with safety Beat the System: London’s Uber ban has nothing to do with safety
MarketWatch First Take: Zuckerberg and investors both win in split quit, thanks to Wall Street love of Facebook MarketWatch First Take: Zuckerberg and investors both win in split quit, thanks to Wall Street love of Facebook
The Wall Street Journal: U.S. notifies 21 states that Russians tried to hack their election results in 2016 The Wall Street Journal: U.S. notifies 21 states that Russians tried to hack their election results in 2016
Snap backlash, Facebook capitulation won’t stop multi-class stock structures Snap backlash, Facebook capitulation won’t stop multi-class stock structures
Zuckerberg abandons bid for nonvoting Facebook shares after investor fight Zuckerberg abandons bid for nonvoting Facebook shares after investor fight
Market Snapshot: Dow, S&P 500 eke out small gains, post second weekly advance Market Snapshot: Dow, S&P 500 eke out small gains, post second weekly advance
Britain downgraded by Moody’s on Brexit concerns Britain downgraded by Moody’s on Brexit concerns

Leave a Reply

Submit Comment
© 2017 Stock Investors News. All rights reserved. XHTML / CSS Valid.