MW: Gold futures struggle as earnings buoy sentiment
By Laura Mandaro, MarketWatch
SAN FRANCISCO (MarketWatch) -- Gold futures attempted a slight rise Thursday as optimism over earnings from a slate of international conglomerates shifted some investors into equities, but a slipping dollar provided some support.
Gold for December delivery (GCZ10 1,344, +0.20, +0.02%) , down earlier, turned slightly higher shortly after U.S. stocks opened. The contract added $2.20, or 0.2%, to $1,346.30 an ounce.
“Good stock earnings are moving asset allocation to other areas,” wrote George Gero, a precious metals strategist at RBC Capital Markets, in an early-morning note.
U.S. stocks opened higher, extending the prior session’s rally, after earnings from Caterpillar, Inc. (CAT 80.10, -0.22, -0.27%) , McDonald’s Corp. (MCD 79.30, +1.89, +2.45%) , Travelers Cos. (TRV 55.41, +0.77, +1.40%) and Ebay (EBAY 27.81, +2.15, +8.38%) -- combined with a drop in weekly jobless claims -- sweetened sentiment. The Dow Jones Industrial Average (DJIA 11,203, +95.43, +0.86%) added 56 points.
The dollar slipped against some major currencies, though stayed off earlier lows. The dollar index (DX 10.67, -0.01, -0.11%) fell to 77.044, off 0.1% from 77.147 late in the prior session, off lows of 76.844.
Gold has rallied to new record highs in the past two months as investors sought a hedge against expectations the dollar would lose more value due to extraordinary stimulus measures from the Federal Reserve. The dollar has lost about 7% since the end of August, while gold has rallied nearly 8%.
