Gold Futures Continue Lower as Risk Sentiment Improves
Gold prices declined on Tuesday, extending losses on the prior session as worries faded above the potential damage of Hurricane Irma as tensions to the Korean Peninsula took a backseat.
Comex gold futures were at $1,331.70 a troy ounce by 2:40AM ET (0640GMT), down $4.00, or around 0.3%, after earlier touching its lowest since Sept. 1 at $1,327.00.
Prices from the gold tumbled $15.50, or almost 1.2%, on Monday, its biggest one-day percentage decline since early July.
Gold’s losses came as appetite for safe-haven assets eased amid relief that North Korea refrained from doing a weapons test to mark the anniversary from the country’s founding.
There was speculation inside the lead up to the weekend that North Korea could launch its next missile test then to celebrate the occasion.
Risk sentiment received one more boost after Hurricane Irma struck the U.S. southeast with less force than once feared, scaling back estimates for economic damage.
Despite losses, gold prices remained within sight of last week’s in excess of one-year most of $1,362.40. The dear metal is well-supported in recent weeks amid concerns over geopolitical uncertainty about the Korean peninsula and reduced expectations of U.S. monetary policy tightening.
Elsewhere about the Comex, silver futures dipped 5.8 cents, or about 0.3%, to $17.84 a troy ounce. It rose to a more than four-month peak of $18.29 late last week.
Among other metals, platinum shed 0.2% to $992.55, while palladium tacked on 0.5% to $935.15 an ounce.