hernan4429/iStock via Getty Images
Gold pared some losses after Wednesday’s release of minutes from July’s Federal Reserve meeting, after futures had settled at a two-week low on weak economic data out of China, a rebound in the U.S. dollar, and rising Treasury yields.
Front-month Comex gold (XAUUSD:CUR) for August delivery settled -0.7% to $1760.30/oz, its fourth loss in the past five sessions, while August Comex silver (XAGUSD:CUR) closed -1.7% to $19.71/oz, also the fourth decline in five sessions.
Gold equities finished with broad losses, including (NEM) -2.5%, (GOLD) -2.4%, (AEM) -4%, (AUY) -3.9%, (KGC) -4.3%, (NGD) -7.6%, (AGI) -3.5%, (IAG) -5%, (HMY) -4.9%, (GFI) -3.9%, (AU) -3.6%.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (IAU), (NUGT), (PHYS)
After rebounding since falling below $1,700/oz in late July, analysts said gold is finding resistance to climb back above the $1,800 psychological threshold.
The prospect of less aggressive rate hikes by the Fed than previously expected has given way to “the reality that more hikes will nonetheless be needed, which diminishes the appeal of a non-yield bearing asset such as gold,” according to Kinesis Money’s Rupert Rowling.
Front-month Comex gold has gained 3.5% from its 52-week low of $1699.50/oz on July 20.
