• The price of gold fell on Wednesday, as global stocks hovered near record highs making the safe-haven asset less attractive, and upbeat U.S. growth data prompted an earlier rise in the U.S. dollar and U.S. Treasury yields.
• The U.S. data, along with signs of progress with the U.S. tax overhaul and Europe's Brexit negotiations, brought fresh highs for world stocks earlier Wednesday, while crypto currency bitcoin smashed past the $11,000 level for the first time, hours after it hit the $10,000 mark. World stocks and Treasury yields later retreated from daily highs and the U.S. dollar index fell slightly against a basket of currencies. However, gold fell further though it remained stuck within the narrowest monthly range since 2005, while silver dipped to its lowest in nearly 8 weeks.
• Spot gold was down 0.7 percent at $1,284.23 an ounce by 2:45 p.m. EST (1945 GMT). U.S. gold futures for December delivery settled down $12.80, or 1 percent, at $1,282.10 per ounce.
• "This drop in gold came when GDP surprised to the upside, the dollar started to rally and yields moved higher," Julius Baer analyst Carsten Menke said.
"The drop in physical demand has made gold very, very sensitive to the U.S. dollar and U.S. bond yields. There is basically nothing else that is driving the gold market this year."
• Gold has risen 12 percent so far in 2017, bouncing in the first quarter as it clawed back some losses posted towards the end of 2016 in the run-up to the second U.S. interest rate increase in a decade.
• While another rate increase is expected next month, fears for more aggressive hikes have receded. A lack of clear drivers has kept gold between $1,265 and $1,300 throughout November, its narrowest monthly range in 12 years.
• Among other precious metals, silver was down 1.6 percent at $16.56 an ounce, after touching $16.50, its lowest since Oct. 6.
• Palladium dipped 1.4 percent at $1,012.72 an ounce, after reaching its highest since February 2001 on Tuesday at $1,028.70, while platinum was down 1 percent at $939.50.
Reference: Reuters
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