Gold futures were clinging to slim gains early Wednesday as back-and-forth action has confined the haven metal in a relatively tiny trading range over the past several sessions.
The dollar inched higher, rising off a three-week low hit this week, and stocks pointed to early gains, souring some demand for gold, as mostly upbeat corporate earnings are encouraging risk-taking around financial markets.
June gold GCM8, +0.58% was up $4.20, or 0.3%, at $1,353.70 an ounce. It slipped less than 0.1% Tuesday after edging higher by 0.2% Monday. Gold tallied a rise of roughly 0.8% last week, after ending midweek at the highest finish since late January.
Silver’s gain was more pronounced. May silver SIK8, +2.25% added 20 cents, or 1.2%, at $16.99 an ounce early Wednesday.
The SPDR Gold Shares GLD, +0.48% exchange-traded fund was up 0.2%, and the iShares Silver Trust SLV, +2.28% advanced 1.3%, while the VanEck Vectors Gold Miners GDX, +1.48% rose 0.6%.
As for other markets influencing gold, the ICE U.S. Dollar Index DXY, +0.04% inched up 0.1% at 89.54. U.S. stock futures pointed to a rise at the open Wednesday, putting the Dow on track to build on an earnings-driven rally that has taken it back into positive territory for the year.
Known stock bear Doug Kass, featured in the Need to Know call of the day, continues to find utility in gold considering his view of stock-market risk. He thinks gold’s rise—up some 3% so far this year—is “solid,” and he’s long the SPDR Gold Shares ETF.
Moderating political risk contributed to the stall for gold’s price after it was announced that South Korea and North Korea would hold talks to potentially change a decades-old armistice into a peace agreement, and as U.S. officials confirmed a top-level meeting with the North Korean leader.
Market attention this afternoon will turn to the Fed’s Beige Book, which is scheduled to hit at 2 p.m. Eastern Time. It will give anecdotal evidence on economic conditions from around the central bank’s 12 districts.
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New York Fed President William Dudley is due to give a speech on the economic outlook at a college in New York City at 3:15 p.m. Eastern. After that, the Fed’s vice chair for bank supervision, Randal Quarles, is slated to make remarks at the Bretton Woods Committee in Washington, D.C., at 4:15 p.m. Eastern.
Around the metals market, May copper HGK8, +2.91% traded at $3.136 a pound, up 1.8%. July platinum PLN8, +1.17% added 0.9% to $948.60 an ounce, while June palladium PAM8, +2.91% added 1.8% to $1,022.65 an ounce, holding ground at the highest level since late February as U.S. tensions with Russia threaten palladium supplies.