Gold Lower After USD Rebound

September 26, 2017 Share Print 0

Gold prices are moderately lower in early U.S. trading Tuesday. A rebounding U.S. dollar index early this week that hit a four-week high overnight is working against the precious metals markets today. December Comex gold was last down $6.20 an ounce at $1,305.20. December Comex silver prices were last down $0.112 at $17.035 an ounce.

World stock markets were mostly weaker overnight, as some risk aversion is back in the marketplace following Monday’s latest salvo from North Korea, in which the isolated nation said the U.S. had declared war on it. North Korea also said it had the right to shoot down U.S. warplanes outside of its air space. However, traders and investors are getting somewhat desensitized to the war of words between the U.S. and North Korea.

Still, safe-haven demand and bargain hunters willing to buy any dips will likely continue to at least limit the downside in the gold market for at least the next few weeks.

Focus this week is also on central banker speeches. Federal Reserve Chair Janet Yellen delivers a speech Tuesday and Vice Chair Stanley Fischer talks Thursday. Other Federal Reserve officials will also give speeches throughout the week.

via Kitco

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.