Gold futures were on pace to end the Wednesday session in negative territory after the dollar made a steady recovery throughout the day.
Gold for December settlement on the Comex division of the New York Mercantile Exchange slipped $2.0 or 0.2 percent to $1,352.0 per ounce. Trade has ranged from $1,350.30 to $1,357.60.
A string of disappointing data releases put a damper on the dollar and led to a broad-based precious and industrial metals recovery. But the uptick was short-lived with the greenback rebounding today and was last trading at 95.04 on the dollar index.
Until the Federal Reserve meeting concludes on September 21, investors will be focused on any potential hints from various officials – but investors are not anticipating another Fed interest rate hike until 2017.
“It will not be until next week when we get some meatier numbers markets will chew on heading into the Fed meeting on the 20th/21st,” Edward Meir, an analyst at INTL FCStone, said. “At this stage, although the odds for a Fed rate move in September are slim, they should not be completely ruled out given the unusual timing the central bank faces.”
Looking ahead, the European Central Bank is scheduled to meet on September 8. Policy officials are expected to address the limited number of assets and persistently low inflation despite unprecedented stimulus measures.
Investors returned in droves overnight with exchange-traded-funds tracked by FastMarkets surging 13.78 tonnes to a total of 2,115 tonnes – near a three-year high.
“The profit-taking seems to have run its course and the lower prices have attracted follow-through buying,” William Adams, Head of Research at FastMarkets, said.
“We feel prices will now have to push up into new high ground to avoid further stale long liquidation and possibly short-selling. Our big-picture outlook remains bullish but more profit-taking could easily be triggered if the price action disappoints,” Adams continued.
In data today, US Jolts jobs openings were a better-than-expected 5.87 million. Market participants are now awaiting key Chinese economic data: trade numbers on Thursday, CPI and PPI inflation readings on Friday and industrial production, retail sales and fixed asset investment readings at the start of next week.
Turning to US markets, the Dow Jones industrial average and S&P were each down 0.2 percent, while recovered 0.2 percent to $1.1236 against the euro.
As for other precious metals, Comex silver for December settlement fell 28.3 cents or 1.4 percent to $19.855 per ounce. Trade has ranged from $19.815 to $20.235.
Platinum for October delivery fell $9.80 or 0.9 percent to $1,092.90 per ounce, while the most active palladium contract stood at $690.05 per ounce, down $10.60.
(Editing by Tom Jennemann)
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Source: Bullion Desk News
