Gold futures were set to snap a two-day string of gains early Wednesday in New York, a day after the commodity settled at its highest level in more than four months on the back of dollar weakness.
Gold for February delivery
GCG9, -0.29%
was $3.90, or 0.3%, lower at $1,242.70 an ounce, following its highest finish for the contract since July 25, FactSet data show. March silver
SIH9, -0.48%
traded 9 cents, or 0.6%, lower at $14.55 an ounce, after that metal ended 1% higher on Tuesday.
The CME Group
CME, +0.05%
said that U.S.-based equity and interest-rate futures and options products will be closed Wednesday in observance of the national day of mourning for former President George H.W. Bush. However, commodity markets were operating on regular trading schedule, while U.S.-based risk markets were largely darkened. All other markets on CME Globex, which would include energy and metals futures, will be open for the day.
Against that backdrop, assets including gold, may see volatile action, given lighter-than-usual trading, market participants said.
Some market participants were attributing gold’s slight retreat on the session to investors selling some of their holdings after Tuesday’s healthy gain.
“With risk sentiment stabilizing, well kind of, the gold market is taking some profits,” wrote Stephen Innes, a head of trading at Oanda, in a Wednesday research report. “Overall its time to hit the pause button until markets open until after the day of mourning,” he said.
Stock-index futures for the Dow Jones Industrial Average
YMZ8, +0.46%
DJIA, -3.10%
and the S&P 500
ESZ8, +0.57%
SPX, -3.24%
were tilting slightly higher, attempting to rise after a rout on Tuesday that saw all three main equity benchmarks shed at least 3%.
Concerns about a lasting cessation of hostilities between President Trump and Chinese President Xi Jinping after the pair approved a 90-day moratorium between Beijing and Washington on tariff tensions, and signs that bond investors hold a dim long-term outlook for markets, have combined to upend risk appetite.
Meanwhile, the ICE U.S. Dollar Index
DXY, -0.08%
was down 0.1% at 96.87. Typically, a weaker dollar typically boosts investment demand for dollar-priced commodities, like gold.
Later in the week, job-market data, a key report for the Federal Reserve ahead of its last rate-setting meeting of 2018 Dec. 18-19, will come into focus.
In other metals trading, March palladium
PAH9, +1.05%
rose 0.9% to $1,191.10 an ounce, as the metal was set to extend its record run.
Read: Palladium at record high, with prices at their closest to gold in 16 years
January platinum
PLF9, -0.48%
fell by 0.4% to $800.90 an ounce and March copper
HGH9, +0.09%
added 0.1% to $2.761 a pound.
Source : MTV
