Gold fell on Wednesday as uncertainty clouds sentiment just one week before the Federal Reserve holds its critical September meeting.
Gold for December settlement on the Comex division of the New York Mercantile Exchange fell $19.00 to close at $1,102.0 per ounce. Trade ranged from $1,100.10 to $1,124.70.
The precious metal has been trading in a tight band over the past week as equity markets continued to recover from the equity downturn on August 24.
However, the Dow Jones industrial average and S&P were down 0.9 percent and 0.8 percent respectively, but the dollar was 0.1 percent stronger at $1.12 against the euro.
The dollar softened to $1.1620 during Black Monday, but has steadily recovered along with European and Asian equity markets.
Next week’s Federal Open Market Committee (FOMC) meeting could spur a more definitive price movement, especially if the FOMC decides to raise the Federal Funds rate for the first time since 2006.
“We expect investors to further reduce net long positions in the wake of Fed rate hikes this year and next year…[along with] a higher US dollar,” ABN AMRO said in a note today. “Gold weakness is not over yet and further price falls are likely.”
In US data, JOLTS job openings in July were 5.75 million, above the forecast of 5.3 million. Additionally, the previous month was revised up to 5.32 million from 5.25 million.
In supply news, Anglo American Platinum will sell its Rustenburg, South African operation to Sibanye Gold for at least 4.5 billion rand ($330 million), it said on Wednesday.
As for other precious metals, Comex silver for December delivery fell 18.5 cents or 1.3 percent to $14.570 per ounce. Trade ranged from $14.560 to $14.930.
Platinum for October settlement slumped $20.0 to $982.90 per ounce, while the most-actively traded palladium contract was at $577.95 per ounce, down $8.60.
(Editing by Tom Jennemann)
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