Gold Lower After USD Rebound

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

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