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Gold Futures Continue Lower as Risk Sentiment Improves

Published 12/09/2017, 07:41
Updated 12/09/2017, 07:51
© Reuters.  Gold Futures Continue Lower as Risk Sentiment Improves
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Investing.com - Gold prices declined on Tuesday, extending losses from the prior session as worries faded over the potential damage of Hurricane Irma and as tensions on the Korean Peninsula took a backseat.

Comex gold futures were at $1,331.70 a troy ounce by 2:40AM ET (0640GMT), down $4.00, or around 0.3%, after falling to a session low of $1,327.00, its worst level in a week.

Prices of the yellow metal tumbled $15.50, or almost 1.2%, on Monday, as appetite for safe-haven assets eased amid relief that North Korea refrained from conducting a weapons test to mark the anniversary of the country's founding.

There had been speculation in the lead up to the weekend that North Korea could launch its next missile test then to celebrate the occasion.

Risk sentiment received a further boost after Hurricane Irma struck the U.S. southeast with less force than once feared, scaling back estimates for economic damage.

Despite losses, gold prices remained within sight of last week's more than one-year high of $1,362.40. The precious metal has been well-supported in recent weeks amid concerns over geopolitical uncertainty on the Korean peninsula and reduced expectations of U.S. monetary policy tightening.

Elsewhere on the Comex, silver futures dipped 5.8 cents, or about 0.3%, to $17.84 a troy ounce. It rose to a more than four-month peak of $18.29 late last week.

Among other precious metals, platinum shed 0.2% to $992.55, while palladium tacked on 0.5% to $935.15 an ounce.

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