Gold stuck in range just below $1,800 an ounce after edging higher early Wednesday as Treasury yields and the dollar eased, making the bullion more attractive to holders of other currencies.
The yellow metal has mostly been rangebound for the past two weeks as investors await next week’s statement from the Federal Reserve about the pace at which the central bank plans to taper stimulus measures. Soaring inflation has caused widespread speculation that the Fed will escalate the pace of the taper.
Investors were also awaiting the release of the November U.S. consumer price index on Friday for the latest barometer on inflation. Fed policymakers are set to meet Dec. 14 and 15 to consider what to do. The statement after the Fed meeting will also be closely watched for indications on the timing of any interest rate increase, which would be bearish for gold.
February gold futures rose 0.3% Tuesday to settle at $1,784.70 an ounce on Comex. Gold gained 80 cents in the first two days of this week and has closed between $1,762.70 and $1,788.10 since Nov. 23. Gold decreased 0.4% in November after advancing 1.5% in October. The yellow metal is down 5.8% so far in 2021. Currently, the February contract is down $1.70 (-0.10%) an ounce to $1,783.00 and the DG spot price is $1,782.10.
Gold gained early Wednesday as Treasury yields retreated from a one-week high hit in Tuesday’s session and the dollar index weakened.
Prices also got a boost after U.S. President Joe Biden on Tuesday threatened Russian President Vladimir Putin with economic action against Russia if it invades Ukraine. Fears about the spread of the new omicron variant of the coronavirus also put a floor under prices. Gold is a traditional hedge against uncertainty, whether economic or geopolitical.
In economic news, investors were also awaiting Thursday’s release of U.S. weekly initial jobless claims for more on the state of the economy.
March silver futures increased 1.2% Tuesday to settle at $22.52 an ounce on Comex. The front-month contract gained 0.2% in the first two days of this week. Silver fell 4.7% in November after rising 8.6% in October. The metal is down 15% so far this year. Silver prices are tied to industrial demand. The March contract is currently down $0.088 (-0.39%) an ounce to $22.435 and the DG spot price is $22.47.
Spot palladium rose 0.3% Tuesday to $1,865.50 an ounce and is up 1.8% so far this week. It plummeted 13% in November after rallying 4.3% in October. It’s down 24% so far in 2021. Currently, the DG spot price is up $11.00 an ounce to $1,878.00.
Spot platinum gained 1.6% Tuesday to $962.20 an ounce and is up 1.9% so far this week. The metal dropped 8.1% last month after rising 6% in October. It’s down 10% so far this year. The DG spot price is currently up $1.40 an ounce to $963.40.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.