Gold slips to 3-month low as U.S. dollar, stocks gain traction

Gold futures slipped lower Tuesday morning as strength in the U.S. dollar and fresh highs for U.S. stock benchmarks recently reflected waning demand for haven gold as investors awaited a speech from President Donald Trump.

December gold GCZ19, -0.16% on Comex fell $3.80, or 0.3%, to $1,453.30 an ounce after shedding 0.4% on Monday, hitting its lowest settlement since Aug. 1 according to Dow Jones Market Data.

December silver SIZ19, -0.34%, meanwhile, shed 5 cents, or 0.3%, to $16.745 an ounce, following a 0.1% slide for gold’s sister metal a day ago.

“Gold appears to be in a holding pattern while also barely hanging on a thread ahead of President Trump’s speech at the Economic Club of NY,” wrote Edward Moya, senior market analyst at brokerage Oanda. Trump’s ECNY speech is scheduled for noon Eastern Time and could provide a spark for precious metals and other assets if the president says something about the long-running U.S.-China trade scuffle.

“With gold hovering around key support, a Trump Christmas surprise could deliver a blow to all safe-havens. If Trump chooses to announce any major trade breakthroughs, we could see US stocks reinvigorated and safe-havens punished across the board,” Moya wrote.

Meanwhile, stocks have been somewhat buoyant with the Dow Jones Industrial Average DJIA, +0.15% notching its ninth all-time high of 2019, while the U.S. dollar, as measured by the ICE U.S. Dollar Index DXY, +0.09%, edged up 0.1%. Stocks gains and a stronger dollar can undercut appetite for assets considered havens like bullion.

Platinum PLF20, -1.31% slipped further to the lowest level since September 2018.


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 market analyst with OANDA, producing up-to-the-minute fundamental analysis of geopolitical events and monetary policies around the world. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments 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 BNN, CNBC and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.
Ed Moya