Gold prices slip ahead of wholesale inflation reading
Gold prices slipped Wednesday as the dollar stabilized ahead of another snapshot on closely watched inflation and the latest tally of retail sales.
April gold GCJ8, +0.03% lost $1.30, or 0.1%, to $1,325.70 an ounce. The contract rose $6.30, or 0.5% on Tuesday, for its biggest single session dollar and percentage rise since March 6 and highest settlement since March 7, FactSet data showed. Gold rose then as the U.S. dollar softened and the high-profile departure of Secretary of State Rex Tillerson boosted haven demand for the yellow metal. The contract has been volatile, although within a relatively tight range.
The ICE U.S. Dollar Index DXY, -0.01% rose less than 0.1% to 89.72. The index is down roughly 1% so far this month.
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The retail sales report is scheduled to be out at 8:30 a.m. Eastern Time. At the same time, the producer price index for February is due, followed by data on business inventories for January at 10 a.m. Eastern.
See: MarketWatch’s Economic Calendar
Those reports follow a mild reading for consumer-level inflation earlier this week.
Rising inflation could add pressure on the Fed to speed up its rate rises, which could lift the dollar, though strangle the stock market. Gold, in turn, although negatively affected by higher interest rates, could attract hedging demand against too-hot inflation. The impact of trade policy has also served as a backdrop to recent trading.
“Safe-haven gold may find support if the stock markets were to come under pressure again, and more so if the dollar were to also fall further in the event of retaliation to Trump’s protectionist policies,” said Fawad Razaqzada, technical analyst with FOREX.com. “In the short-term, however, a lot will depend now on the Fed’s inflation and rate hike projections next week.”
Razaqzada stressed that gold’s repeated failure to get past the 2017 high of $1,357 and the fact that it has formed a lower low just ahead of the $1,300 long-term support line are the mixed technical signals keeping the metal in a range-bound market.
As for other metals, May silver SIK8, +0.02% was little changed at $16.627 an ounce.
Read: Silver is poised to outpace gold this year
Among exchange-traded funds, the silver-focused exchange-traded iShares Silver Trust SLV, +0.00% traded up 0.1% and the SPDR Gold Shares GLD, +0.19% was flat. The VanEck Vectors Gold Miners ETF GDX, -0.41% rose 0.2%.
May copper HGK8, +1.66% 1.4% at $3.183 a pound. April platinum PLJ8, +0.69% rose 0.6% to $973.30 an ounce and June palladium PAM8, +0.72% added 0.7% to $998.45 an ounce.
Metals and Minerals