Metals Stocks: Gold ends lower after touching a fresh 3-month high


Gold prices end with a loss on Wednesday, after touching a fresh three-month high during the session, as the market continued to look for hints on the path for interest rates from Federal Reserve.

Price action

Gold prices for December delivery


lost $1, or nearly 0.1%, to settle at $1,775.80 per ounce on Comex. It had traded as high as $1,788.20, the highest intraday level for a most-active contract since Aug. 17, FactSet data show.

Silver prices for December delivery


edged up by a penny to settle at $21.524 an ounce.

Palladium prices for December

delivery rose 0.1% to end at $2,081.30 per ounce, while platinum prices for January delivery

fell 0.6% to $1,016.20 per ounce.

Copper prices for December

delivery retreated by 5 cents, or 1.2%, to $3.7735 per pound.

What’s happening

Gold’s “rally/rest cycle of about a week ago, when it seemed to have broken its inverse correlation with the dollar index, was replaced by a very brief spurt of safe-haven buying” on initial reports Tuesday of an apparent wayward missile landing in Poland, said Brien Lundin, editor of Gold Newsletter.

Poland said Wednesday, however, that there is no indication that the missile was an intentional attack, according to The Associated Press.

“While the initial prognosis points to the missile being accidentally fired by Ukrainian forces rather than by Russian ones, the incident highlights how easily the war in Ukraine could spill over and risk escalating the conflict to one involving NATO members,” said Rupert Rowling, market analyst at Kinesis Money, in a market update.

Now, gold now seems to be “simply digesting its recent price rebound, awaiting the next catalyst,” said Lundin.

As for what is likely to spark gold’s next move, he said the metal, as well as every other asset class, is “hanging on every uttered breath from any [Federal Reserve] official.”

On Wednesday, San Francisco Federal Reserve President Mary Daly said the central bank’s benchmark interest rate may have to rise above 5% to start to put downward pressure on inflation

Lundin said he expects to see a half-point rate hike next month, with the Fed then pausing to see the effects of what the central bank has done.

“” Longer term, I believe the current levels for gold and silver will prove to have been bargains.” ”

— Brien Lundin, Gold Newsletter

“With inflation having peaked and another recession looming, they’re likely to sit on their hands for a while,” he said. “This will be bullish for not only gold but all other assets, at least initially. Longer term, I believe the current levels for gold and silver will prove to have been bargains.”

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