#Metals Stocks: Gold futures pull back from a 3-month high
Table of Contents
“#Metals Stocks: Gold futures pull back from a 3-month high”
Gold futures retreated Tuesday as the steady march toward conflict in Russia over Ukraine was seen easing somewhat, weakening the case for bullion after the commodity rallied to highs not seen since mid November.
Russia’s Defense Ministry has said it has pulled back a portion of its forces amassed outside Ukraine’s border, even as some battalions were seen moving on a war footing, according to reports.
For now, gold prices have backed off as Russian President Vladimir Putin has “pulled his needle away from the balloon” that has recently formed in gold prices, fueled by inflation, and the “pain trade is becoming less of a threat,” Adam Koos, president at Libertas Wealth Management Group, told MarketWatch.
Against that backdrop, gold for April delivery
GCJ22,
GC00,
was trading $18.30, or 1%, lower to trade at $1,851.10 an ounce. The most-active gold futures on Monday settled at the highest level since Nov. 17, FactSet data show.
The softening of rhetoric around a possible annexation of Ukraine by Russia also was pushing assets perceived as risky, such as stocks, sharply higher, with the Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
headed substantially higher, dulling some investment demand away from gold.
Gold had taken a decisively more bullish run higher in recent weeks, supported primarily by the threat of war in Western Russia and concerns about the global recovery from the pandemic and the reaction of central banks world-wide. Gold is seen as a safe-haven asset in times of geopolitic unease.
On Tuesday, prices for the precious metal pared some of its early losses, then fell back, following data showing U.S. wholesale prices jumped 1% in January, more than the 0.5% increase forecast by Wall Street economists and the largest gain in a year.
Jeff Wright, chief investment officer at Wolfpack Capital, told MarketWatch that he could “not find any positive take away” in the latest inflation data.
Expect more consumer inflation in months to come, he said. Knowing this, along with comments from St. Louis Fed President James Bullard Monday on “front loading” Federal Reserve action, interest rate increases along with quantitative tightening will begin very soon, Wright said.
In relation to gold, this is not a positive and gold is likely to move lower in coming weeks “if the safe-haven interest and safety dissipates,” he said. Gold may hold the $1,800 level for awhile but over time, holding that level “will be difficult without fresh interest or inflows of capital.”
Meanwhile, March silver
SIH22,
SI00,
was trading at $23.125 an ounce, down 72.3 cents, or 3%. March copper
HGH22,
tacked on 0.3% to $4.522 a pound.
April platinum
PLJ22,
lost 2.1% to $1,006.30 an ounce, while March palladium
PAH22,
declined by 5.2% to $2,225 an ounce, giving back much of the nearly 7% it gained Monday.
By
Myra P. Saefong
and
Mark DeCambre
If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.
For forums sites go to Forum.BuradaBiliyorum.Com
If you want to read more News articles, you can visit our News category.
