Copper, Gold Pull Back as Dollar Strengthens
Gold prices fell Tuesday, as profit-taking and a stronger U.S. dollar eroded recent gains.
Gold for December delivery declined 1.3% to $1,286.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices rose to a three-week high last week on doubts over whether the Federal Reserve will raise interest rates again this year in the face of mixed economic data. However, the rally was capped as stocks hover near record highs and the dollar climbed.
The WSJ Dollar Index was recently up 0.2% at 86.61, making dollar-denominated metals like gold more expensive for foreign buyers.
The Dow Jones Industrial Average broke above 23000 for the first time on Tuesday in intraday trading, bolstered by shares of health-care companies.
"It remains a frustrating market for investors who are looking for a sustained glide path higher," said Peter Hug, global trading director at Kitco Metals, in a Tuesday note.
Meanwhile, copper futures for December delivery dropped 1.3% to $3.1955 a pound in New York.
On Monday, copper prices reached highs not seen since August 2014 after better-than-expected Chinese inflation data allayed fears of ebbing economic growth in the world's biggest metals market.
Those data were particularly welcome for traders fearing a potential growth-rate target cut by the Chinese government when the country's Communist Party congress begins Wednesday. Now, investors are more likely to be looking for signals of further economic stimulus, Investec said in a morning note.
Traders will also be watching for any Chinese announcements about copper scrap imports, with analysts suggesting that the government may ban imports from the start of 2018. This would be bullish news for miners and copper prices alike, Investec said.
Write to Stephanie Yang at firstname.lastname@example.org and David Hodari at David.Hodari@dowjones.com
(END) Dow Jones Newswires
October 17, 2017 14:56 ET (18:56 GMT)