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Gold futures edged lower Wednesday, losing ground as the U.S. dollar drifted to the upside.
Prices for the precious metal slipped “as the dollar index gained from Brexit news that lowered [the] British pound, and the euro, “ George Gero, managing director at RBC Wealth Management, wrote in a daily note.
For now, traders are taking “wait and see positions…as impeachment, U.S. budgets, and trade worries return with [the U.S.-Mexico-Canada] treaty,” he said. “While we may see [the] $1450-$1500 range continue for gold this year, the pull appears toward the $1500 area next year with better commodity prices…due to poor weather in growing areas” contributing to inflation, and possible large commodities purchases by China as deals on tariffs “unravel.”
Gold for February delivery GCG20, -0.16% on Comex fell $1.40, or 0.09%, to $1,479.20 an ounce, while March silver SIH20, -0.45% was off 6.7 cents, or 0.4%, at $17.005 an ounce.
Read: Gold prices look to post biggest annual rise in 9 years
In Wednesday dealings, the ICE U.S. Dollar DXY, +0.17% a measure of the greenback against six major rivals, as up 0.2% at 97.382. A stronger dollar can be a negative for commodities, making them more expensive to users of other currencies.
U.S. stocks have continued to inch further into record territory following last week’s so-called phase-one U.S.-China trade deal, also denting haven appetite for gold.
Overall, however, activity remains subdued, said analysts at Oanda, in a note, with gold perhaps the first market to enter “holiday mode” and likely to see choppy conditions “unless there are further delays or hiccups over the phase-one trade deal.”
In other metals trading, January platinum PLF20, +0.31% rose 0.3% to $932.80 an ounce, while March palladium PAH20, -0.01% was little changed at $1,918.40 an ounce.
March copper HGH20, -0.53% was off 0.5% to $2.80 a pound.
