Gold tumbles as traders dump safe-havens

GoldGetty Images/Dario Pignatelli/BloombergEmployees push a trolley laden with crates of one kilogram gold bars at the YLG Bullion International Co. headquarters in Bangkok, Thailand.

Gold prices edged lower in North American trading on Wednesday, as demand for safe-haven assets eased amid a recovery in the dollar and global equities.

Comex gold futures shed $US9.60, or around 0.8%, to $US1,284.50 a troy ounce by 9:35AM ET (13:35GMT). Meanwhile, spot gold was down $US6.60 at $US1,282.90.

The yellow metal settled higher for the fifth session in a row on Tuesday after hitting its strongest since early November at $US1,297.40 at the start of the week.

Also on the Comex, silver dipped 5.2 cents, or about 0.3%, to $US18.22 a troy ounce. It touched its highest since November 11 at $US18.65 on Monday.

The dollar index, which tracks the greenback against a basket of six rival currencies, edged up 0.2% to 99.62, pulling away from Tuesday’s low of 99.36, its deepest trough since March 28.

Meanwhile, the 10-year U.S. Treasury yield was at around at 2.21%, after falling to a low of 2.165% Tuesday, the lowest since November 10.

Gold has been well-supported in recent sessions as market players sought shelter in safe-haven assets ahead of the upcoming French presidential election on Sunday and amid heightened geopolitical tension between the U.S. and North Korea.

Reduced expectations for a Federal Reserve rate hike in June in wake of recent weakness in U.S. economic data further burnished the appeal of the yellow metal.

Futures traders are pricing in around a 40% chance of a hike at the Fed’s June meeting, according to’s Fed Rate Monitor Tool, down from around 60% last week.

Elsewhere in metals trading, platinum inched up 0.1% to $US979.40, while palladium tacked on 0.5% to $US774.85 an ounce.

May copper futures gained 1.9 cents to $US2.549 a pound, bouncing back after touching a three-month low of $US2.515 in the prior session, on concern over a slowdown in demand from China.

Get the latest Gold price here.

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