Gold Futures Settle Lower As Dollar Rebounds From Recent Weakness
Gold prices edged lower on Wednesday as the dollar fared reasonably well amid uncertainty about the pace of economic recovery due to spikes in coronavirus cases across the world.
The dollar index, which rose to 94.19 around mid-morning, dropped down to 93.67 a little before noon before recovering to 93.85. It had ended at 93.89 on Tuesday.
The greenback’s initial strength came as the mood in the financial markets turned cautious after the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden turned into bitter taunts and near chaos yesterday and raised concerns over heightened political risk ahead of the presidential election.
Gold futures for December ended down $7.70 or about 0.4% at $1,895.50 an ounce, falling from the session’s high of $1,906.60 an ounce.
The futures contract shed more than 4% in September, but recorded a gain of about 5.3% in the third quarter, notching up gains for the eighth successive quarter.
Silver futures for December dropped $0.951 to settle at $23.494 an ounce, while Copper futures for December settled at $3.0325 per pound, up $0.0425 from previous close.
In economic news, a report released by payroll processor ADP said private sector employment in the U.S. surged up by more than expected in the month of September, increasing by 749,000 jobs, after jumping by an upwardly revised 481,000 jobs in August.
Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
According to a report from the National Association of Realtors, pending home sales in the U.S. jumped to a record high in the month of August. The NAR report said its pending home sales index spiked by 8.8% to 132.8 in August after surging up by 5.9% to 122.1 in July. Economists had expected pending home sales to increase by 3.2%.