Gold ends lower as buyers point to $1,800 as key price to watch

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Gold ends lower as buyers point to $1,800 as key price to watch


Gold futures finished in negative territory Tuesday, relinquishing early gains in a lackluster session that extends a weeklong weakening trend for precious metals.

Falling gold prices come as investors wager on the prospect of further fiscal stimulus to reflate the economy in the wake of the coronavirus pandemic, with President-elect Joe Biden taking office on Jan. 20.

Some experts say they are watching $1,800 as a crucial level for gold to stay above, with a breach below signaling that a bearish trend may be taking hold of the precious commodity.

“The yellow metal has been in a downtrend for nearly one week and should it break below yesterday’s low, it could target $1,800,” wrote David Madden, market analyst at CMC Markets UK, in a Tuesday research note.

“Gold had had a lacklustre session as volatility in the markets as a whole has been low, especially the US dollar,” he wrote.

Biden on Friday called for extra financial relief for Americans “now” after the latest U.S. jobs report showed losses for the first time in eight months, a reflection of the continued toll the coronavirus pandemic is taking on the economy. The private sector and government shed 140,000 jobs in December, the Bureau of Labor Statistics said.

Market participants also are watching efforts by Congress to impeach President Donald Trump, for a second time, for his role in inciting violent mob attacks on the Capitol building in Washington last week.

However, a steady rise in the yields for long-term bonds, which can compete against gold for haven buying, ultimately may be eroding appetite from precious metals. The 10-year Treasury note rate
TMUBMUSD10Y,
1.141%

was at an intraday peak of 1.186% early Tuesday, and yielding 1.15%, at last check.

February gold
GC00,
+0.34%

GCG21,
+0.34%

traded $6.60, or 0.4%, lower to settle at $1,844.20 an ounce, following a 0.8% gain on Monday.

Silver for March delivery
SI00,
+1.74%

SIH21,
+1.74%

added 15.1 cents, or 0.5%, to finish at $25.435 an ounce, after climbing 2.6% in the prior session.

Elsewhere on Comex, March copper
HGH21,
+1.95%

rose 4.1 cents, or 1.2%, to settle at $3.6055 a pound.

Platinum for April delivery
PLJ21,
+3.58%

rose $23.20, or 2.2%, to end at $1,067.80 an ounce, while March palladium
PAH21,
+0.55%

shed $2.60, or 0.1%, to settle at $2,376.20 an ounce.



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