Gold Prices Bounce Off 3-Week Lows As Stock Markets Stay Choppy
Gold prices edged higher on Wednesday, bouncing over prior session’s three-week little as focus remained on U.S. stocks, which are the source in the latest turbulence in global markets.
Comex gold futures were at $1,333.00 a troy ounce by 3:10AM ET (0810GMT). That’s up around $3.00, or 0.25%, using their last settlement. Prices touched their lowest since Jan. 12 at $1,322.80 over the last session.
Gold futures closed lower for your third straight session , as U.S. equities bounced back from their worst one-day selloff in six a few years the dollar held relatively steady.
The precious metal found support right after the rebound in Asian markets stalled Wednesday as several indexes in the neighborhood gave up early gains to conclude the session in negative territory.
Major U.S. stock index futures were also pointing to the sharply lower open, with Dow futures falling around 1%, an indication that market participants remain jittery amid this week’s global markets rout.
There wasn’t obvious single reason for massive losses seen stateside, even so the sell-offs were attributed to concerns about rising interest levels, program trading and volatility funds that use leverage.
Unless the market plunge intensifies and damages the economy, the government Reserve isn’t highly likely to budge looking at the decide to raise borrowing costs three times this coming year, some analysts said.
However, traders have dialed back bets the U.S. central bank would improve the interest rate of rate hikes to between two and three hikes from three to four hikes last week, in accordance with Investing.com’s Fed Rate Monitor tool.
Gold is extremely responsive to rising rates, which add to the opportunity cost of holding nonyielding bullion.
In precious metals action, silver futures inched up 6.5 cents, or 0.4%, to $16.64 a troy ounce.
Palladium prices were little changed at $1,002.30 an oz. In the earlier session, it touched $999.22 an oz, its lowest since Dec. 8.
Sister metal platinum meanwhile lost 0.2% at $992.40 after touching its lowest since Jan. 16 in the earlier session.