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Metals Stocks: Gold ekes out a gain a day after falling to a 4-month low

December 07
01:04 2017

Gold futures eked out a gain on Wednesday to settle above a four-month low, with analysts pinning the rebound in part on geopolitical worries.

February gold GCG8, +0.15% rose by $ 1.20, or less than 0.2%, to settle at $ 1,266.10 an ounce, after Tuesday’s 1% slide to its lowest settlement in about four months. It remains down so far for the week, showing a decline of more than 1%, after posting declines in each of the last two sessions.

“Gold has bounced from October lows of $ 1,260 thanks to the weaker [U.S. dollar] and geopolitical risk (U.S., Middle East, Brexit),” said Accendo Markets analysts in a note. The ICE U.S. Dollar DXY, +0.26%  has posted a gain so far this month after ending November roughly 1.6% lower.

There are concerns in the U.S. about the potential for a partial government shutdown, and the Trump administration’s decision to recognize Jerusalem as Israel’s capital threatens to spark unrest across the Mideast. In addition, investors continue to keep an eye out for developments in the Brexit talks after U.K. and European Union officials on Monday failed to reach a deal that would move negotiations on to the second stage.

Read: Gold bugs hope to tap bitcoin’s mother lode of profits

Data released Wednesday showed that U.S. private-sector employment slowed down in November, with employers adding 190,000 jobs.

Investors await Friday’s nonfarm payrolls report for further clues on employment ahead of the Federal Reserve’s two-day meeting next week, that ends with a statement on monetary policy Wednesday.

Meanwhile, some analysts emphasized that gold has clambered back above its 200-day simple moving average after undercutting that closely watched chart level on Tuesday. There has been an “expected recovery” that has taken prices “again back above the 200 daily SMA,” said James Hughes, chief market analyst at AxiTrader, in a note.

March silver SIH8, -0.39% fell 0.7% to $ 15.956 an ounce, while March copper HGH8, +0.66%  added 0.5% to $ 2.962 a pound.

January platinum PLF8, -1.67%  ended at $ 902.80 an ounce, down 1.6%, while March palladium PAH8, +0.96%  added 1% to $ 986.95 an ounce.

Among the metals exchange-traded funds, the SPDR Gold Trust GLD, -0.24%  fell by 0.3%, while the iShares Silver Trust SLV, -0.85%  shed 1.1%. The VanEck Vectors Gold Miners ETF GDX, -1.16%  was down 1.3%.

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