Gold bounces off 11-week low
Los Angeles (Sept 3) Gold prices on Wednesday rebounded just slightly from the prior session’s 11-week low, shaking off concerns of a strengthening dollar and an improving U.S. economy to show signs of life in an otherwise dreary stretch.
At last check, gold for December delivery GCZ4, +0.15% was up $3.10, or 0.3%, to $1,268.10 an ounce. September silver SIU4, +0.26% added 9 cents, or 0.5%, to $19.16 an ounce.
A day earlier, strength in the dollar outweighed any safe-haven appeal to push gold prices toward their biggest drop in almost three months. Much of the blame can be pinned on data showing U.S. manufacturing in August expanded at its fastest pace in three years.
On the economic front Wednesday, car sales will be filtering in throughout the day. At 10 a.m. Eastern, manufacturers’ shipments, inventories and orders for July are released. The Fed Beige Book is due out at 2 p.m. These all serve as a prelude to the key nonfarm payrolls on Friday.
Ole Hansen, head of commodity strategy at Saxo Bank, said that bullish bets on the direction of gold were cut by 21% to the lowest since June, while the number of open options and futures contracts has dropped to the lowest level in almost five years.
“The near-term outlook for gold has become increasingly uncertain resulting in a fading interest,” he said.
Elsewhere in metals trading, October platinum PLV4, +0.14% tacked on $3.70 to $1,412.60 an ounce. This move came after the metal fell to its lowest close since April.
Meanwhile, December palladium PAZ4, -0.54% rose $3.80 to $887.05 an ounce. High-grade copper for December delivery HGZ4, -0.48% was flat at $3.16 a pound.