Gold was on track Wednesday to end a three-day string of
advances as the dollar gained some ground.
was off at $4.70, or 0.4%, at $1,292.80 an
ounce, with the metal flirting with a close in the red for the
first time in four sessions. Meanwhile, July silver
was trading 7 cents, or 0.3%, lower at $17.640 an
Haven commodities have drawn bids amid rising geopolitical
jitters. Thursday, notably, marks a trifecta of possibly
market-moving events, including the European Central Bank
policy-setting meeting, the U.K. general election and former
Federal Bureau of Investigation boss James Comey’s testimony
before a Senate panel as the panel investigates Russia’s
alleged efforts to interfere in last year’s presidential race.
Gold tends to garner buying during times of uncertainty.
Tuesday trading saw a number of so-called haven assets lure
investors, including the yield on the 10-year Treasury note
which moves inversely to price, carving out a fresh November
low, at 2.15%.
On Wednesday, however, a gauge of the greenback, the ICE U.S.
which tracks the buck against a basket of six
rivals, was ticking slightly higher, up 0.2%,
after falling in the first several days in June. Strength in
the dollar can make gold and other commodities-pegged to the
currency more expensive to buyers using other monetary units.
Still, the uptrend for precious metals appears mostly intact,
as gold is holding near a psychologically significant level of
$1,300 an ounce.
Colin Cieszynski, chief market strategist at CMC Markets,
indicated that gold may be experiencing a normal pullback after
its recent healthy advance, with so-called resistance levels at
or near its $1,295-$1,300 an ounce.
“Gold is hanging around $1,290 still struggling with resistance
in the $1,295 to $1,300 zone but holding well above $1,280, its
recent breakout point. The price appears to be pausing normally
to work off a near overbought [relative-strength index],” he
wrote in a Wednesday research note.
Relative-strength, or RSI, is a gauge market technicians use to
track bullish or bearish momentum in an asset.
In exchange-traded funds, the SPDR Gold Trust
was on track to trade 0.2% lower, the VanEck
Vectors Gold Miners ETF was down 0.6%, while the iShares Silver