MW: Gold edges lower, on track for fourth straight loss
NEW YORK (MarketWatch) — Gold futures fell for a fourth straight session Thursday, undercut as the dollar remained supported by expectations the Federal Reserve will take a more hawkish tone on interest rates.
Further signs of easing tensions in Ukraine also served to rob the yellow metal of its safe-haven appeal.
Gold futures for December delivery GCZ4, +0.06% fell $1.50, or 0.1%, to $1,243.80 an ounce. September silver futures SIU4, -0.91% dropped 17 cents, or 0.9%, to $18.75 an ounce.
“As yet, the [European Union] has not been able to bring itself to implement the new economic sanctions against Russia. This, coupled with the withdrawal of Russian troops from eastern Ukraine — as confirmed by Ukrainian President Poroshenko — is clearly being interpreted by market participants as a sign that the Ukraine-Russia conflict is easing,” wrote Eugen Weinberg, commodity strategist at Commerzbank in Frankfurt.
The dollar has rallied on expectations the Federal Reserve will change the language in its policy statement after next week’s meeting, potentially reinforcing expectations for a rate hike next year. A stronger dollar can be a negative for commodities priced in the currency, making them more expensive to buyers who use other currencies. Also read: The only two words that will matter at the Fed
“In the short term, any bullish data in the U.S. could put more pressure on the yellow metal and $1,240 is the main support while $1,200 remain the key support area,” wrote Naeem Aslam at Ava Trade.
Aslam said he’s not bearish on gold over the longer term due to geopolitical uncertainties and growth problems in Europe and China. Evidence of increasing inflation pressures in the U.S. could also push gold higher, he said.
