MW: Gold futures fall, head for sixth session loss
Copper contract bucks Thursday’s bearish trend in metals
By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures declined Thursday as gains for U.S. stocks on the heels of upbeat economic data dulled investment demand for the precious metal, sending prices lower for a sixth-consecutive session.
The February gold futures contract GC2G -1.72% fell $31, or 2%, to trade at $1,533.10 an ounce on the Comex division of the New York Mercantile Exchange. Futures prices have already lost 3.3% over the past five sessions, but they’re still on track for a gain of around 8% for the year.
Precious metals have been hit “as traders and investors continue to lock in profits and bolster cash positions in the runup to year end,” said James Moore, analyst at TheBullionDesk.com, in a note.
“But, it is worth remembering that despite the recent correction gold is still on course to post its eleventh consecutive year-on-year gain, and that given the ongoing debt problems facing many economies, record-low interest rates and the highs in gold this year, those with a longer-term outlook could view current levels as a buying opportunity,” he said.
In economic news Thursday, pending home sales rose 7.3% in November to the highest level in 19 months, according to an industry trade group. The National Association of Realtors said its pending sales index rose to 100.1 in November from a revised 93.3 in October, and it’s now 5.9% above its year-ago level.
The Chicago PMI for December dipped 0.1 point to 62.5, a better-than-forecast reading and the 27th month of expansion. Economists polled by MarketWatch had anticipated a 60.0 reading for the closely followed gauge tracking the sentiment of purchasing managers. Readings above 50 indicate expansion.
And the number of people who filed requests for jobless benefits rose last week for the first time in a month but remained at a level indicating modest improvement in the U.S. labor market. First-time applications for unemployment compensation climbed 15,000 to a seasonally adjusted 381,000 in the week ended Dec. 24, the Labor Department said.
Strength in the U.S. dollar had pressured dollar-denominated commodities prices Wednesday, and the greenback moved a bit higher on Thursday as well.
The dollar index DXY -0.01% , which tracks the U.S. unit’s performance against six major currencies, climbed to 80.578 from 80.526 late Wednesday.
The March contract for silver SI2H -1.30% dropped 1.6%, or 42 cents, to $26.81 an ounce. It fell more than 5% on Wednesday.
March palladium PA2H -1.84% also lost ground, shedding $13.15, or 2%, to $634 an ounce, as April futures for platinum PL2J -1.56% declined $21, or 1.5%, to $1,371.40 an ounce.
Copper for March delivery HG2H +0.64% was the lone gainer, up 3 cents, or 0.9%, to $3.40 a pound.
Myra Saefong is a MarketWatch reporter based in San Francisco.
