By Joy Wiltermuth and Joseph Adinolfi
Gold futures finished lower on Thursday, as a three-week rally for the precious metal sputtered with investors shifting focus to a rising U.S. stock market instead of on safe-haven plays like gold and the dollar.
Gold futures /zigman2/quotes/210039517/delayed GCZ22 -0.02% expiring in December dropped $6.50, or 0.4%, to settle at $1,807.20 per ounce, the first down close for the most-active contract since Aug. 5, according to FactSet data.
Silver futures expiring in September shed 38 cents, or 1.8%, to end at $20.35.
Platinum futures /zigman2/quotes/228424980/delayed PLV22 -1.39% expiring in October gained $13.30, or 1.4%, to close at $959.4 per ounce, while palladium futures expiring in September gained $42.50, or 1.9%, to end at $2,288.40.
Copper futures expiring in September rose 6 cents, or 1.6%, finishing at $3.71 per pound.
What analysts said
Gold’s rebound over the past three weeks stalled on Thursday, after the precious metal climbed from a low of below $1,680 per ounce for the most-active contract to an intraday high of $1,824 per ounce on Wednesday.
The retreat came a day after U.S. inflation data for July showed signs of a pullback in the pace of sharp consumer-price gains, pegged at a 8.5% annual pace from 9.1% in June, which was a 41-year high. In its wake, stocks rallied sharply, the dollar retreated and gold edged lower.
“Such has lifted trader and investors risk appetite last this week, and that’s a negative for the safe-have metals,” wrote Jim, Wyckoff, senior analyst at Kitco.com, in a Thursday client note.
“Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00,” he said, while also pegging the “next near-term downside price objective” at $1,686.30.
In recent months, the yellow metal has typically traded inversely to the dollar [s: dxy] and Treasury yields, as expectations for rapidly higher interest rates helped dull gold’s luster.
“There is a conflict of narratives playing out in different asset classes, with forex and equities hailing this [consumer inflation] dataset as the beginning of the end in the inflation battle, whereas bonds and precious metals are not really buying it,” Marios Hadjikyriacos, senior investment analyst at XM said, in a client note.