Commodities – Gold Prices Edge Lower as Safe Haven Demand Fades
Investing.com – Gold prices fell below breakeven as easing U.S.-North Korea tensions fuelled requirement for riskier assets lifting global stocks to record highs for the second straight day.
Gold futures for December delivery about the Comex division within the Los angeles Mercantile Exchange fell by $3.46, or 0.26%, to $1,332.46 a troy ounce.
The relief rally continued for any second straight day, lowering sales of safe-haven gold as investors shrugged off fresh threats from North Korea as soon as the U . n . imposed a new round of sanctions, restricting the country’s usage of oil imports while limiting textile exports.
North Korea’s ambassador on the UN, Han Tae Song, told a conference in Geneva: “The forthcoming measures by DPRK [the Democratic Republic of Korea] can certainly make america suffer the very best pain it offers ever proficient in its history.”
Also weighing on gold prices was really a sharp surge in U.S. treasury yields in advance of inflation data due Wednesday, that could influence the Federal Reserve’s interest decision slated for September 20.
Gold is sensitive to moves in U.S. rates, which lift an opportunity valuation on holding non-yielding assets such as bullion.
Analysts, however, are quick to downplay gold’s poor start to a few days as data pointing to some surge in buying activity demonstrates that interest on the gold remains supported.
Net bullish bets on gold rose to 245,300, very high in nearly twelve-months, in line with a report with the Commodity Futures Trading Commission (CFTC) on Friday.
“Although appetite for equities may further affect gold prices, investors will remain cautious and hedge against many unknowns,” said Hussein Sayed, chief market strategist at FXTM. “That’s why we didn’t see any significant outflows from gold-backed exchange-traded funds.”
In other yellow metal trade, silver futures fell 0.01% to $17.90 a troy ounce while platinum futures lost 1.02% to $998.60.
Copper traded at $3.04, down 1.01%, while propane rose by 1.93% to $3.01.