Gold futures declined modestly Tuesday, at risk of finishing below $1,300 an ounce for a third straight day as a tech-led run for stocks and a stable dollar cut into investment interest in the precious metal. The precious metal was down 0.19 percent to trade at $1294.80 and Silver at $16.39, down 0.22 percent.
Bullions continued to trade within a range driven by a stronger dollar and global equities despite geopolitical tensions which continue to simmer.
Analysts believe that Gold’s movement will be largely driven by macroeconomic data ahead of the June FOMC meeting.
The focus today will be on non-manufacturing PMI reports which may pressure bullions further intraday.
Richard Perry, an analyst at Hantec said concerns over the path of protectionist policies that the U.S. is taking could resurface as the Group of Seven (G7) prepares to meet in Canada this week, adding that the lack of progress in discussions between U.S. and China over trade relations was also contributing to the weakness.
He said: “This is leading to a degree of consolidation across forex and commodities markets.”
August gold GCQ8, -0.05 percent slipped $2.20 or 0.2 percent at $1,295.10. Its settlement Monday at $1,297.30 marked the lowest finish since May 23.
U.S. stocks tipped higher after the technology-studded Nasdaq Composite on Monday closed at a record for the first time in nearly three months and investors around the globe generally took on the riskier asset markets.
Investors appeared to be putting trade tensions aside, even after trade talks broke down between the U.S. and China over the weekend. But leaders of the Group of Seven nations will hold talks in Canada on Friday and Saturday, where tariffs and trade are likely to be discussed. This weekend’s rebuke by G-7 finance ministers of the Trump administration’s trade tariffs could add some stress to the gathering.
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Frontpage November 22, 2018