Toptenforex.com – Gold futures settled lower on Tuesday as the U.S. dollar firmed in late trade, helping to erase a slight advance for the dollar-sensitive commodity earlier in the day.

December gold GCZ7, +0.65%  was $2.10, or 0.2%, lower at $1,262.60 an ounce and has traded mixed over two days so far this week.

The ICE U.S. Dollar Index DXY, +0.07% a gauge of the buck against a half-dozen currency rivals, pivoted higher late morning in New York after an upbeat report on employment. So-called JOLTS data, which measures monthly job openings, came in at 6.163 million in June, exceeding both the expected 5.6 million and last month’s 5.702 million. The dollar index was up about 0.2% at gold’s closing.

The report, along with a better-than-expected labor reading last Friday, was seen by some commodity investors as keeping intact the Federal Reserve’s plan to raise interest rates at least once more in 2017.

Higher rates tend to act as a boost to the dollar, drawing traders looking for higher rates on dollar-based deposits. But higher rates can be a headwind for metals, making them more expensive to buyers using weaker currencies and undercutting the appeal of a commodity that doesn’t bear a yield.

Doubts about the pace of economic growth in the U.S., including signs of weaker-than-hoped-for inflation, have weighed on the dollar over the past few weeks, and provided some support for metals. As measured by the ICE dollar index, the buck has been down 2.5% over the past 30 days, according to FactSet data, and off nearly 8.4% so far in 2017.

Meanwhile, September silver SIU7, +0.86% which benefits from its dual role as a precious metal and an industrial commodity, added 13.8 cents, or 0.8%, to close at $16.389 an ounce, ending a four-session slide.

Tuesday’s moves for metals comes amid heightened geopolitical risk, headlined by rising tensions between the U.S. and North Korea over the latter’s nuclear aspirations. U.S. intelligence reports said Tuesday that North Korea had successfully miniaturized a nuclear warhead meant to fit inside the missiles that it has tested.

“Political news from [the U.S.] will be the key market mover today,” said Chintan Karnani, chief market analyst at Insignia Consultants, based in New Delhi, in summing up gold’s early gains.

Also in focus for metals traders was China trade data, which showed July exports and imports grew at a slower pace than they had recently, which could be a headwind for commodities prices.

In exchange-traded funds, the SPDR Gold Shares GLD, +0.29% fell 0.1% late Tuesday, reversing earlier gains, and mining-company focused VanEck Vectors Gold Miners ETF GDX, +0.23% fell 0.4%, while silver-oriented iShares Silver SLV, +1.50%gained 1%.

Elsewhere in the metals complex, September copper HGU7, +0.03% gained 3.55 cents, or 1.2%, to $2.9425 a pound, October platinum settled $2.90, or 0.3%, higher at $974.50 an ounce, while September palladium PAU7, -0.10%  advanced $13.20, or 1.5%, to end at $898.40 an ounce.

Source : MarketWacth
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