Gold futures were moving marginally higher in early Wednesday trade, as the U.S. dollar pulled back somewhat as hope of a pact between Greece and its international creditors took some wind out of the buck’s sails.
Gold for August delivery on Comex GCQ5, +0.63% was $2.30 higher, or 0.2%, at $1,154 an ounce. Those modest gains aren’t insignificant given that the precious metal shed $20 an ounce in Tuesday trade to settle at $1,152 an ounce.
The U.S. ICE Dollar Index DXY, -0.35% was down 0.3% Wednesday at 96.65. A weaker greenback can make dollar-denominated gold more attractive to buyers.
Gold also has been influenced by the vagaries in the Greece debt negotiations, but the metal hasn’t seen significant haven-buying from the episodic negotiations that threaten to result in the southern European country exiting the eurozone.
Read: Greek debt crisis: Latest news
Meanwhile, September silver SIU5, +0.94% slipped 5 cents an ounce Wednesday, or down 0.3%, at $14.93 an ounce. Silver also got pummeled Tuesday, hitting its lowest closing level since August 2009.
September copper HGU5, +2.27% which also has faced a tough stretch of trading, was a penny lower, or down 0.4%, at $2.44 a pound.
Worries about China have been the main culprit for slack in metals as the second-largest economy struggles to stem a downshift in its financial market. Beijing’s failed attempts to curb losses in its stock market have traders fearing that a broader economic slump for the one of the largest importers of industrial and precious metals may be afoot. Read: The crash in Chinese stocks is just beginning
A Wednesday research note from online-trading firm Accendo Markets said gold is likely to be “very troubled” and forecast that the yellow metal will fall to as low as $1,130 an ounce, its lows for November.
Read: Copper sinks to 2009 levels as China worries weigh
Other metals were moving sharply lower. October platinum PLV5, -1.06% was down $15.30 an ounce, or 1.6%, to $1,025.20, while September palladium PAU5, -1.11% lost $9.20 an ounce, or 1.5%, to $642.75 an ounce.
