Gold Futures Settle Lower For 2nd Straight Day

Gold futures settled lower on Tuesday, extending losses from the previous session, as the dollar climbed higher. Some profit taking weighed as well bullion prices.

The dollar index surged to 104.05, gaining 0.33%, extending recent gains, amid expectations the Fed will hold rates unchanged for now.

Some safe-haven buying due to geopolitical tensions helped limit gold’s downside.

Gold futures for February ended down $5.90 or about 0.3% at $2,036.30 an ounce.

Silver futures for March ended lower by $0.361 at $24.546 an ounce, while Copper futures for March settled at $3.7840 per pound, down $0.0515 from the previous close.

“We’re continuing to see profit-taking in gold after it started the week in remarkable fashion, smashing through record highs and bursting above $2,100. It didn’t last though and already it’s trading back close to $2,000 which will be a very interesting test of support after it took so long to significantly break and hold above it,” says Craig Erlam, Senior Market Analyst at OANDA, UK & EMEA.

In economic news today, a report from the Labor Department showed job openings slid to 8.73 million in October from 9.35 million in September, falling to the lowest level since March 2021. Economists had expected job openings to edge down to 9.30 million.

Meanwhile, a separate report released by the Institute for Supply Management showed service sector activity in the U.S. grew at a slightly faster rate in the month of November.

The ISM said its services PMI crept up to 52.7 in November from 51.8 in October, with a reading above 50 indicating growth. Economists had expected the index to inch up to 52.0.

The Labor Department is scheduled to release its closely watched monthly jobs report on Friday. The data could have a significant impact on the outlook for interest rates.

Economists currently expect employment to increase by 185,000 jobs in November after rising by 150,000 jobs in October, while the unemployment rate is expected to hold at 3.9%.

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