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Gold futures edged lower on Tuesday, set to relinquish much of the gains scored a day earlier, with the haven metal finding little reason to make any significant moves ahead of minutes this week from the Federal Reserve’s October monetary policy meeting.
Muted optimism for a partial U.S.-China trade pact dulled some appetite for bullion as Treasury yields TMUBMUSD10Y, -1.80% and the dollar DXY, -0.01% traded little changed from Monday and U.S. benchmark stock indexes saw mixed trading.
“Rallies remain shallow as gold traders still think a trade deal will happen,” wrote Stephen Innes, market strategist at AxiTrader in a daily research note.
December gold GCZ19, +0.05% on Comex gave up $2.20, or 0.2%, to $1,479.70 an ounce, after gaining 0.2% on Monday. December silver SIZ19, +0.41%, meanwhile, added 2.5 cents, or 0.2%, to $17.025 an ounce, adding to its 0.3% rise, a day ago.
Some doubts about a genuine Sino-American trade detente and fears that the stock market has gotten ahead of itself during its recent uptrend has also helped to keep bullion somewhat buoyant.
“Gold remains supported by the fact a comprehensive trade deal, one which would include tariffs rolls back and could shift more neutral the dovish central bank narrative, [is] unlikely,” Innes wrote.
Meanwhile, the U.S. central bank will release minutes from its October policy meeting on Wednesday, after the settlement for gold futures prices.
Fed Chairman Jerome Powell has signaled that Fed policy is on hold at least through the end of this year.
New York Fed President John Williams on Tuesday said the economy is clearly facing several challenges, primarily from overseas, but the three rate cuts since July should help sustain growth.
Among other metals traded on Comex, December copper HGZ19, +0.90% added 0.9% to $2.645 a pound. January platinum PLF20, +1.56% tacked on 1.4% to $907.60 an ounce and December palladium PAZ19, +1.42% traded at $1,722.90 an ounce, up 1.1%.
