Gold futures took another turn south on Tuesday, adding to recent declines as investors looked past the surprisingly strong jobs report last week and forward to hearing from Janet Yellen, nominee to chair the Federal Reserve, later this week.
In electronic trading, gold for December delivery gave up $4.40, or 0.3%, to $1,276.70 an ounce. Silver was hit harder, down 22 cents, or 1%, to $21.06 an ounce.
On Monday, gold failed to shake off last week’s surprisingly strong U.S. jobs report and the accompanying expectations that the Federal Reserve will soon begin to staunch the flow of monetary stimulus to the economy.
Standard Bank research strategist Walter de Wet isn’t expecting the recent downtrend to change over the next few days.
“We would expect gold to remain under pressure ahead of nominee chairperson Janet Yellen’s testimony to the U.S. Senate Banking Committee on Thursday,” he said in a note. “The market is likely to focus on how the latest developments in the U.S. economy have changed her views on asset purchases by the Fed.”
In the meantime, a trio of Fed speakers are on tap Tuesday, with the most interesting remarks potentially coming from Minneapolis Fed President Narayana Kocherlakota at 1 p.m. Eastern. Read: Spotlight on the economy.
Elsewhere, January platinum added $3.20, or 0.2%, to $1,435.60 an ounce, while palladium shed $4.75, or 0.6%, to $749.80 an ounce. High-grade copper for December delivery lost a penny, or 0.4%, to $3.25 a pound.
Source: Marketwatch
