Gold hovers near $1,500, ‘stuck in no-man’s land’

Gold futures wavered between modest losses and gains Wednesday, holding near the $1,500-an-ounce level after four consecutive sessions of declines, as traders weighed the easing of near-term U.S.-China trade worries, a day ahead of the European Central Bank meeting.

“Some recent trade optimism and split views on what the ECB will do has kept gold stuck in no-man’s land,” said Edward Moya, senior market analyst at Oanda.

“We we could see a delay in the ECB’s [quantitative easing] launch, that could provide one last downward push before we see buyers fully re-emerge,” he said in an email update. “Medium-term outlook still calls for higher gold prices as central bank buying remains strong and the Fed appears to be locked into an easing cycle, despite their hesitation to say so.”

Gold for December delivery GCZ19, +0.25% on Comex fell 30 cents, or 0.02%, to $, 1498.90 an ounce, while December silver SIZ19, -0.09% lost 8.6 cents, or 0.5%, to $18.10 an ounce.

Gold hit a string of more-than-six-year highs earlier this month as stocks sold off in August with the U.S.-China trade war worsening, but has pulled back this month as equities have steadied. Gold is down around 1% so far this week and 2% since the end of August.

“So, unless risk appetite turns sour again, or the dollar slumps — say, as a result of hawkish ECB or a very poor U.S. CPI report tomorrow — gold could extend its losses further,” said Fawad Razaqzada, market analyst at, in a note, referring to the August consumer-price index.

And gold looks more vulnerable to further weakness than silver, he said, “given the rosier sentiment towards risk assets, with [silver] being supported by its other main use as an industrial material. Hence, or otherwise, the gold-silver ratio has been falling, making silver more appealing (or less attractive to the sellers) in the short term.”

In other metals trading action, December palladium PAZ19, +1.20% rose $25.90, or 1.7%, to $1,580 an ounce, while October platinum PLV19, +0.61% gained $7, or 0.8%, to $943.60 an ounce.

December copper HGZ19, -0.70% lost 0.6% to $2.6135 a pound.

Among exchange-traded funds, SPDR Gold Shares GLD, +0.50% edged up by 0.2%.


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.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya