On Wednesday, gold opened higher for the first time in three sessions. However, the growth of the yellow metal is limited because market players prefer buying risk assets rather than “safe-haven” ones.
By 7:00 GMT on Comex, gold futures gained around 0.2% and touched $1,334.98 a troy ounce. Yesterday, the prices dropped to $1,326.70, which was the lowest level since the beginning of September.
Silver futures rose by 0.2% to $17.93 a troy ounce. Last week they reached a four-month high of $18.29. Platinum contracts reached $986.45, and palladium moved by 0.3% to $946.25 an ounce.
Last Friday, the yellow metal soared to a one-year record of $1,362.40, as the Irma storm hit Florida. Also, investors awaited another North Korean missile test on Saturday, which also had a great influence on the asset. However, worries over the North Korean conflict and Hurricane Irma have eased for now, and traders have started selling risk-off assets. As a result, gold prices demonstrated a down-trend on Monday and Tuesday sessions.
The upcoming U.S. economic reports are also in focus now. The data on producer prices will be published today at 12:30 GMT, while the consumer price inflation data is scheduled for Thursday. Traders are seeking any signs of the Federal Reserve’s balance sheet reduction and possible interest rate hikes one more time this year. The markets doubt that the Fed will tighten monetary policy till the end of 2017, since the inflation rate leaves much to be desired. However, the balance sheet exit is highly expected.
Meanwhile, the U.S. dollar was stable against the yen, but fell against the euro. At 6:20 GMT, the American currency was traded around 110.01 yen after rising to 110.295 yen earlier.
The DXY was down by 0.1% to 91,773. However, it managed to remain above the 2.5-year low of 91.011 that was set on Friday.
The euro kept rising and touched 1.1986 after gaining 0.2%. Last week, the European currency reached a 2.5-year high after the ECB meeting. The ECB head Mario Draghi announced that the stimulus program could be ended by the end of 2017.
The British pound touched the mark of $1.3315. The data published on Tuesday showed that the UK inflation rose to 2.9% in August, which exceeded the Bank of England’s target level of 2.0%.
The Australian and New Zealand dollars have changed slightly and were traded near $0.8034 and $0.7302 respectively.