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Gold futures attempted to keep trading above $ 1,200 an ounce on Wednesday as concerns over trade negotiations and a weaker dollar helped boost the attractiveness of investment in the metal.
December gold
GCZ8, + 0.25%
added $ 2.40, or 0.2%, to reach $ 1.201.50 an ounce, after finishing Tuesday's session down 0.6%, lying below the psychological level at $ 1,200 for the first time since August 23, according to data from FactSet.
Concerns over tariff disputes, particularly between the United States and its long-standing Canadian counterparts, and the clashes between Washington and Beijing, with the start of Chinese tariffs this week, have worried investors. The outlook for emerging economies has also fueled a recent wave of concern on Wall Street, with major indices tracking US stocks down on Wednesday.
This situation has recently contributed to the rise of the US dollar in recent sessions, but offered gold, a traditional hideaway, support on Wednesday.
"A hint of safe haven as contagion from emerging markets spreads into the equity markets," said Stephen Innes, head of trading for the Asia-Pacific region of the OANDA online trading platform, updated by email on Wednesday .
Dollar-denominated commodities often trade in the opposite direction of the dollar, as movements in the US unit may influence the attractiveness of these products for holders of other currencies. A measure of the strength of money, the ICE US Dollar Index
DXY, -0.28%
was down 0.3% to 95.163 on Wednesday. The index is almost stable during the week.
On Tuesday, the dollar has firmed again after the manufacturing industry report released in August by the Institute for Supply Management reached 61.3%, up from 58.1% in July, surpassing the forecasts of 57.9% of economists surveyed by MarketWatch. A reading of more than 50 indicates an expanding activity.
"The yellow metal has fallen below the price level of $ 1,200, the US fundamentals have strengthened after the positive figures in the manufacturing sector have confirmed the steady pace of the US economy," wrote Wednesday Alfonso Esparza, strategist at OANDA.
"The risk of trade war remains on the radar as new US tariffs on China are expected to come into effect this week and President Trump's weekend comments have not helped trade negotiations between Canada and the United States. United, "he wrote.
Meanwhile, December money
SIZ8, + 0.46%
after closing Tuesday with a 2.6% loss, it sold 4.5 cents or 0.3% to 14.225 dollars an ounce.
In the traded metal products, the popular SPD Gold ETF
GLD, + 0.32%
increased by 0.2%, while the iShares Silver Trust
SLV, + 0.30%
advanced by 1%.
December copper
HGZ8, + 0.50%
was up about 0.2% to $ 2.607 a pound, after recording a sharp 2.6% drop on Tuesday. Platinum of October
PLV8, + 0.67%
traded little changed at $ 778.40 an ounce, while December palladium
Paz8, -0.67%
paid 0.7% to $ 960.40 ounce.
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