Gold price declines as stocks head higher, dollar drifts

April 17, 2018

New York (Apr 17)  Gold slipped Tuesday as stocks headed higher on the back of upbeat earnings and the dollar steadied, as news on the geopolitical front went quiet for now.

June gold GCM8, -0.41% eased $5.10, or 0.4%, to $1,345.40 an ounce, giving back all of Monday’s slight gain. Largely directionless trading for the haven metal continues over recent sessions. Gold tallied a rise of roughly 0.8% last week, after ending Wednesday at the highest finish since late January.

May silver SIK8, -0.25% eased 0.2% to $16.63 an ounce.

The SPDR Gold Shares GLD, -0.24% and the iShares Silver Trust SLV, +0.26%  each slipped 0.2%, while the VanEck Vectors Gold Miners GDX, -0.39%  fell 0.2%.

The ICE U.S. dollar index DXY, +0.08% which measures the greenback against six major rivals, was flat at 89.42.

Stocks rose Monday, and continued higher Tuesday, on a relief rally pinned on hopes the U.S. may not be dragged into a deeper conflict with Syrian allies Russia and Iran.

Elsewhere, U.S. and U.K. officials warned that Russia has increased cyberattacks on American and British companies and government agencies. Relations between the three countries have been strained since the U.S., France and Britain launched missile attacks on the chemical-weapons facilities of the Russian-supported Syrian government.

A lack of escalation in the trade tensions between China and the U.S. has also emboldened investors. That confidence may take a knock on news the U.S. is searching for ways to retaliate against Beijing for its measures restricting access for American tech companies to the Chinese market.

Several Fed officials are lined up to speak in public on Tuesday. San Francisco Fed President John Williams, who has said he backs three or four gradual interest rate rises this year, is scheduled to give a speech in Madrid at 9:15 a.m. Eastern Time.

In another calendar highlight, Fed Vice Chair for Financial Supervision Randal Quarles will testify to the House Finance Committee on regulatory reform at 10 a.m.

Three non-voting Fed members are on the docket: Philadelphia Fed President Patrick Harker is set to give a talk on the economics of higher education at St Joseph’s University in Philadelphia at 11 a.m., while Dallas Fed President Rob Kaplan is scheduled to appear at an International Economic Forum of the Americas event in Coral Gables, Fla. at noon. Chicago Fed President Charles Evans is due to speak on the economy and monetary policy to the Chicago Rotary Club at 1:10 p.m.

As for economic updates, readings on housing starts and building permits for March are scheduled for release at 8:30 a.m. Eastern Time, with a figure of 1.255 million expected for the starts. Data on industrial production and capacity utilization for the same month are due at 9:15 a.m. Eastern.


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