Gold Slips To 3-Month Low As U.S. Dollar, Stocks Gain Traction
Ed Moya | Nov 12, 2019 12:51
Gold futures slipped lower Tuesday morning as strength in the U.S. dollar and fresh highs for U.S. stock benchmarks recently reflected waning demand for haven gold as investors awaited a speech from President Donald Trump.
December gold GCZ19, -0.16% on Comex fell $3.80, or 0.3%, to $1,453.30 an ounce after shedding 0.4% on Monday, hitting its lowest settlement since Aug. 1, according to Dow Jones Market Data.
December silver SIZ19, -0.34%, meanwhile, shed 5 cents, or 0.3%, to $16.745 an ounce, following a 0.1% slide for gold’s sister metal a day ago.
Gold appears to be in a holding pattern while also barely hanging on a thread ahead of Trump’s speech at the Economic Club of NY. Trump’s ECNY speech is scheduled for noon Eastern Time and could provide a spark for precious metals and other assets if the president says something about the long-running U.S.-China trade scuffle.
With gold hovering around key support, a Trump Christmas surprise could deliver a blow to all safe-havens. If Trump chooses to announce any major trade breakthroughs, we could see U.S. stocks reinvigorated and safe-havens punished across the board.
Meanwhile, stocks have been somewhat buoyant with the Dow Jones Industrial Average DJIA, +0.15% notching its ninth all-time high of 2019, while the U.S. dollar, as measured by the ICE (NYSE:ICE) U.S. Dollar Index DXY, +0.09%, edged up 0.1%. Stocks gains and a stronger dollar can undercut appetite for assets considered havens like bullion.
Platinum PLF20, -1.31% slipped further to the lowest level since September 2018.
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