Gold futures moved higher on Wednesday, set to recoup around half of what they lost a day earlier when bullion sank below a psychologically significant level at $1,900 an ounce.
A slightly weaker U.S. dollar was helping to provide some lift for the metal. The ICE U.S. Dollar Index DXY, -0.25% traded down 0.3% in Wednesday dealings.
“We are just waiting for a clear cut catalyst and yes, the dollar and any updates on the stimulus negotiations [have] the biggest influence on the price as of now,” said James Hatzigiannis, chief market strategist at Ploutus Capital Advisors.
The better-than-expected U.S. producer-price index number contributed to a fall in the dollar versus other currencies, which sent dollar-denominated gold prices higher, he told MarketWatch. The PPI jumped 0.4% last month
So, the “combination of better then expected PPI numbers and ‘dip-buying’ has led to the move up, said Hatzigiannis. But “we will need to see more proof of a recovery globally before we can expect demand to pick back up.”
December gold GOLD, +2.05% GCZ20, +1.00% was up $19.20, or 1%, at $1,913.80 an ounce, a day after tumbling 1.8% on Tuesday.
Silver for December delivery SI00, +1.64% SIZ20, +1.64%, meanwhile, gained 40 cents, or 1.7%, at $24.53 an ounce, following a 4.5% skid for gold’s sister metal in the previous session.
Gold enthusiasts point to uncertainties around the 2020 presidential race between President Donald Trump and former Vice President Joe Biden and a lack of clarity around the prospects for economic growth amid the viral outbreak as factors that have buttressed gold prices despite steep periodic drawdowns.
“The approaching U.S. presidential election and doubts of any new U.S. stimulus package for Americans before the end of the year are also unknowns that have paused the stock indexes at mid-week,” wrote Jim Wyckoff, senior analyst at Kitco.com.
Among other metals, December copper HGZ20, +0.11% tacked on 0.2% to $3.05 a pound. January platinum PLF21, -1.00% shed 0.8% to $866.60 an ounce, but December palladium PAZ20, +0.50% traded at $2,358.20 an ounce, up 0.6%.
Add Comment