Gold futures slipped Monday, but remained within striking distance of a more than three-month high reached last week as the direction of the dollar and stocks vacillated, influencing metals trade.
Gold for December delivery GCZ8, -0.02% slipped $2.40, or 0.2%, at $1,230.90 an ounce.
The contract ended Friday and last week slightly lower after a report showed an even stronger-then-expected job market performance in October than expected, data seen keeping the next Federal Reserve interest-rate hike likely on track for December. Higher rates dull the appeal of nonyielding bullion, while boosting the dollar, making dollar-priced commodities less attractive to investors using other currencies.
Last Thursday, gold settled at a more than three-month high when the U.S. dollar DXY, -0.01% weakened, and as stock markets wrapped up a dismal October. The dollar inched higher Monday, while stock futures signaled a choppy day on Wall Street.
“Increased risk aversion with the equity markets selloff has certainly added a risk-averse boost to gold in recent weeks, but if the dollar starts to lose traction due to the reversal of the U.S.-China trade dispute then this could be a driver of continued gold strength,” said Richard Perry, analyst at Hantec Markets.
Perry is watching $1,236 as a technical “line in the sand” for gold and says a consistently higher market at that price opens the way to a climb toward $1,266.
December silver SIZ8, -0.62% meanwhile, fell 3 cents, or 0.2%, at $14.73 an ounce. It scored a 0.4% rise for last week. January platinum PLF9, -0.23% fell 0.2% to $873.80 an ounce after a 5% march higher last week. December palladium PAZ8, +1.14% gained 0.9% to $1,114.70 an ounce, after tacking on roughly 1.7% for its weekly performance.
December copper prices HGZ8, -1.66% fell 1% to $2.78 a pound after ending last week up 2.4%.
Read: Copper weakens as hopes for trade deal fade
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