Gold price dips as investors favour stocks

Otmane El Rhazi from The Bullion Desk.

The gold price slipped further on Tuesday after equity markets hit fresh records and the dollar rallied.

Gold for February delivery on the Comex division of the New York Mercantile Exchange was last down $3.50 at $1,176.30 per ounce. Trade has ranged from $1,173.00 to $1,184.90.

“The general theme now seems to be one of a rising dollar and buoyant equity markets, leaving commodities vulnerable as an asset class. Short-term, we would keep an eye on North-Korean developments, as they could stir the markets if the retaliation intensifies,” INTL FCStone’s Ed Meir said.

In the wider-markets, the dollar rose 0.31 percent to 1.2192 against the euro, while Germany’s DAX and France’s CAC-40 were up 0.46 percent and 1.13 percent respectively.

Meanwhile, US stocks climbed for a fourth straight session yesterday on Monday – the S&P 500 index closed at record high of 2078.54.

In data today, the Chinese CB leading index at 0.9 percent was slightly better than last month’s 0.8 percent. In the eurozone, French consumer spending was better than predicted at 0.4 percent, while Italian retail sales at 0.0 percent fell short of forecast.

Here in the US, durable goods orders unexpectedly fell by 0.7 percent in November, which was much worse than the call for a 3 percent gain after a 0.3 percent increase in October.

But US third quarter GDP came in at 5 percent in the third quarter, which is the quickest pace in 11 years and easily surpassed the 4.3 expected.

In the other precious metals, Comex silver for March delivery wee down 7.3 cents at $15.615 per ounce. Trade has ranged from $15.560 to $15.780.

Platinum futures for February delivery on the Nymex were up $9.10 at $1,191.30 per ounce, while the most-actively traded palladium contract was at $814.00 per ounce, down $1.25.

The post Gold price dips as investors favour stocks appeared first on The Bullion Desk.