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Gold futures settle lower Wednesday for a fourth straight session, but market bulls continue to expect global growth worries to keep a floor under the yellow metal.
Gold for April delivery
GCJ9, -0.66%
on Comex lost $4.80, or 0.4%, to settle at $1,314.40 an ounce, following modest losses in each of the past three sessions. Prices settled at their lowest in a week. March silver
SIH9, -1.05%
declined 13.5 cents, or 0.9%, to $15.701 an ounce.
“While the precious metal is seen extending losses in the near term, bulls still remain in control in the medium to longer term,” said Lukman Otunuga, research analyst at FXTM, in a note. “For as long as global growth fears weigh on market sentiment and expectations mount over the Fed taking a break on rate hikes this year, gold will continue shining.”
“Focusing on the technical picture, the precious metal has the potential to rebound towards $1,320 if $1,308 proves to be reliable support,” he said. “A breakdown below $1,308 is likely to invite a decline back towards the psychological $1,300 level.”
President Donald Trump’s State of the Union speech late Tuesday failed to offer any updates on developments linked to trade talks between the U.S. and China. The trade dispute has, at times, provided some haven support for gold.
“Many market watchers thought the president might mention specifics on the U.S.-China trade-talks progress, but he did not,” said Jim Wyckoff, senior analyst at Kitco.com, in a recent note. Still, “the trade talks appear to be making progress, ahead of the early-March deadline for a deal being reached.”
In other metals trade, April platinum
PLJ9, -1.41%
lost $6.10, or 0.7%, to $813.80 an ounce, but March copper
HGH9, +0.25%
rose 2 cents, or 0.7%, to $2.837 a pound.
March palladium
PAH9, +0.15%
added $10.40, or 0.8%, to finish at $1,351.60 an ounce, with prices logging another record settlement. The previous record was reached on Jan. 17 at $1,348.20.
Read: Iron-ore prices rally to nearly 2-year high in wake of fatal dam breach
Among exchange-traded funds, the gold-backed SPDR Gold Shares
GLD, -0.68%
fell 0.4%, while the VanEck Vectors Gold Miners
GDX, -1.72%
shed 0.5%.
Holdings in gold-backed exchange-traded funds and similar products logged a fourth straight month of inflows in January to reach the highest level since March 2013, according to a report from the World Gold Council released Wednesday. January saw inflows of $3.1 billion, or 72 metric tons, to 2,513 metric tons.
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