Gold retreated slightly Tuesday, putting a third-straight climb at risk, as the yellow metal fought its way off the more than two-month lows hit late last week.
The metal’s action remains closely linked to dollar moves, although their typically inverse relationship took a break early Tuesday, with markets zoned in on tax policy, the Federal Reserve leadership announcement, the Russian election meddling probe and more.
December gold slipped $2.90, or 0.2%, to $1,274.90 an ounce. It did settle higher Friday and Monday. Notably, gold’s finish at $1,269.60 last Thursday was the lowest since Aug. 8, according to FactSet data. That handed the metal a loss of around 0.6% for last week, its sixth weekly retreat out of the past seven. The SPDR Gold Trust slipped 0.2% in premarket trading Tuesday.
Gold has largely been taking its cues from dollar action over recent sessions.
“Besides, the White House announced yesterday that it will introduce an initial tax reform bill on Wednesday, while media reports suggest Trump will declare his choice for Fed Chair on Thursday. Considering that this week also includes an [Fed interest-rate] decision on Wednesday and the U.S. employment report [hits] on Friday, traders will probably have their hands full for the next days.
The ICE U.S. Dollar Index was up 0.1% at 94.65. This closely tracked dollar index climbed to a more than three-month high Friday as more signs emerged then for progress on President Trump’s promised tax cuts, a factor that has rallied the U.S. currency and driven stocks to record highs, depressing gold’s price. Since that rally, questions over the aggressiveness of tax cuts have arisen, with talk of a phased-in approach to corporate breaks hitting markets Monday.
Among other metals, December silver traded at $16.835 an ounce, down 0.1%, or about 1 cent. The iShares Silver Trust traded nearly flat.
December copper gained 0.1% to $3.116 a pound. January platinum slipped 0.4% at $919.00 an ounce, and December palladium gained 0.5% to $967.20 an ounce.