Gold prices were marginally lower early Wednesday after settling below $2,000 an ounce for the first time in more than two weeks a day earlier as the yellow metal’s latest rally continued to unravel.
Price action
-
Gold futures for June delivery
GC00,
-0.34% GCM23,
-0.34%
declined by $2.60, or 0.1%, to $1,990 per ounce on Comex. -
Silver futures for July delivery
SI00,
-0.43% SIN23,
-0.43%
declined by 6 cents, or 0.3%, to $23.83 per ounce. -
June palladium
PAM23,
-0.17%
shed $5, or 0.3%, to $1,494 per ounce, while July platinum
PLN23,
+1.62%
gained $12.80, or 1.1%, to $1,079 per ounce. -
Copper for July
HGN23,
+1.50%
gained 4 cents, or 1.2%, to $3.71 per pound.
Market drivers
Shifting expectations about the Federal Reserve’s plans for interest rates as U.S. inflation has slowly declined have had an impact on gold since the beginning of the year, analysts said.
“The correction in gold has scope to continue if the odds of another Fed hike next month keep rising or rate-cut bets cool further,” said Marios Hadjikyriacos, senior investment analyst at XM, in emailed commentary shared with MarketWatch.
Some recovery in the U.S. dollar over the last couple of weeks has also weighed on the yellow metal. The ICE U.S. Dollar Index
DXY,
a gauge of the greenback’s strength against other major currencies, was up 0.3% at 102.85.
