Gold futures edged lower in electronic trade Wednesday, stepping back slightly from their strongest level since the start of the month.
Gold for June delivery was down 90 cents, or 0.1%, in Asian trading hours to $1,585.80 an ounce.
The precious metal settled higher by $14.20, or 0.9%, at $1,586.70 an ounce in Tuesday’s session on the Comex division of the New York Mercantile Exchange. It was the highest close since April 1, as a weaker dollar and losses in 4 of the previous 5 sessions helped lure in bargain hunters.
Later Wednesday, gold investors will watch for the release of minutes from the U.S. Federal Reserve’s meeting of March 20. Monetary-policy makers at the meeting decided to continue with their stimulus program of buying $85 billion a month in assets.
Federal Reserve Chairman Ben Bernanke hasn’t indicated he’s ready to slow down bond purchases, particularly after the dismal March U.S. jobs report showing the weaker-than-expected creation of 88,000 new jobs.
Some analysts have said lackluster economic data will likely keep the Fed from tapering monetary easing in the near future, which could benefit gold, as investors seek a hedge against inflation.
For its part, Deutsche Bank on Tuesday cut its outlook on gold prices for this year and next, citing growing headwinds from a strengthening dollar, improving U.S. growth and an increasing appetite for equities over commodities.
In other moves Wednesday, silver for May delivery fell 3 cents, or 0.1%, to $27.85 an ounce. Prices on Tuesday settled at their highest level since April
May copper lost 1 cent, or 0.4%, to $3.43 a pound.
July platinum futures fell $5.80, or 0.4%, to $1,547.30 an ounce, while palladium for June delivery lost $5.60, or 0.8%, to trade at $727 an ounce.
Marketwatch
