Gold futures edged lower Tuesday, as investor worries over the spread of China’s coronavirus abated somewhat and prices consolidated a day after ending at a more-than-six-year high
But analysts said gold and other havens remain likely to see support on adverse developments regarding the outbreak.
Gold for February delivery
GCG20, -0.18%
on Comex fell $4, or 0.3%, to $1,573.40 an ounce, while March silver
SIH20, -1.83%
was off 30.6 cents, or 1.7%, at $17.75 an ounce. Gold on Monday saw the highest close for a most-active contract since April 9, 2013, according to Dow Jones Market Data.
U.S. stock-index futures pointed to a higher start for Wall Street Tuesday, a day after the Dow Jones Industrial Average
DJIA, +0.20%
and S&P 500 index
SPX, +0.32%
suffered their biggest one-day declines since October on fears the coronavirus outbreak could undercut global growth.
Analysts said gold’s haven-like behavior was encouraging, noting that the metal at times has seen its appeal blunted during periods of panic selling in equities and other risky assets.
“We like that there has been no sign of the ‘throwing-the-baby-out-with-the-bathwater’ selling in gold that happened during some other equity market corrections. People on those occasions were taking profits after a rally in gold to pay for margin calls in other weak positions,” said Jasper Lawler, head of research at London Capital Group, in a note. “This time, so far at least, they are holding on to gold.”
Gold remained slightly lower after data showed orders for durable goods surged 2.4% in December, thanks to military purchases, while business investment in the civilian part of the economy declined again.
In other metals trading, April platinum
PLJ20, -0.16%
fell $1.60, or 0.2%, to $990.10 an ounce, while March palladium
PAH20, -0.04%
was off $15.60, or 0.7%, to $2,158 an ounce.
March copper
HGH20, -0.35%
fell 0.5 cent, or 0.2%, to $2.5915 a pound.
Source : MTV
