Gold Recovers After Early Weakness, Settles Higher For 2nd Straight Day
Gold prices recovered after early weakness on Wednesday as the dollar pared its gains, lifting the front-month futures contract to a positive close for a second straight day.
Equities rallied today as technology stocks rebounded after recent sharp setbacks, and most of the markets across Europe closed on a high note. The major U.S. averages, the Dow, Nasdaq and the S&P 500 climbed 2.4%, 3% and 2.6%, respectively, but the safe haven yellow metal still managed to find support to close higher.
The dollar index, which rose to 93.66 early on in the session, extending recent gains, subsequently fell to 93.14 and was last seen at 93.28, down 0.18% from previous close.
Gold futures for December ended up $11.70 or about 0.6% at $1,954.90 an ounce.
Silver futures for December gained $0.092 or 0.3% at $27.083, while Copper futures for December settled at $3.0515 per pound, gaining $0.0265 or 0.9%.
Despite the rally in stock markets today, gold’s safe-haven appeal has ensured the commodity’s firmness. Continued uncertainty on the Brexit front too contributed to the yellow metal’s uptick.
Meanwhile, traders were looking ahead to the monetary policy announcement from the European Central Bank, due on Thursday.