By MarketWatch
MADRID (MarketWatch) — Gold futures backed away from two-week highs Wednesday, as the dollar rose amid fading positive impact for risk assets from the Greek bailout and downbeat China economic data.
Gold for April delivery GCJ2 -0.28% fell $5.30, or 0.3%, to $1,753 an ounce, after ending at their highest point in two weeks in New York on Tuesday, at $1,758.50.
Greece remained in the headlines, with the Athens Composite Index GR:GD -4.04% off 3.7% after Fitch Ratings cut Greece’s sovereign credit rating to C from CCC and said the planned bond swap for private debt holders will amount to a restricted default.
Excitement over the bailout deal faded, with European stocks logging midweek loses. U.S. stock market futures also pointed to a slightly weaker open.
Amid a lack of fading benefits from Greece, the dollar pushed higher. The ICE dollar index DXY +0.27% , which measures the greenback’s performance against a basket of six rival currencies, rose to 79.211 from 79.023 late Tuesday.
The dollar topped the key ¥80 level against the Japanese yen, also as China data disappointed some. The preliminary result of a survey by HSBC showed China factory activity at a four-month high in February, but staying at levels that hinted of a modest contraction. Read more on China data.
A day earlier, futures for precious and base metals rose on news that Beijing had cut reserve requirements for lenders in an effort to boost lending and increase liquidity in China, a big user of metals and other resources.
Among other precious metals, copper for March delivery HGH2 -0.86% fell 4 cents, or 1%, to $3.80 a pound. March silver futures SIH2 -1.20% shed 36 cents, or 1%, to $34.08 an ounce.
Palladium gained as platinum edged higher.
Platinum for April delivery PLJ2 +0.77% rose $10.20, or 0.7%, to $1,695.70 an ounce. March palladium PAH2 +0.25% fell 75 cents, or 0.1%, to $710 an ounce.
