Gold Futures Dip Amid Dollar Gains and Egypt Uncertainty

Gold futures fell slightly on Wednesday due to a stronger US dollar and concerns over Egypt, with investors seeking safe-haven assets. Despite Egypt's political instability, analysts suggest that gold may be forming a bottom, while a stronger dollar pressured the metal's price. Additionally, investors regained confidence in the stock market and growth-sensitive commodities, further undermining gold's role as a refuge.

Key Takeaways:

• Gold futures fell by 0.3% to $1,336.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
• A stronger dollar was the biggest pressure on gold, making it more expensive for buyers using other currencies.
• Sterling Smith, market analyst at Country Hedging, suggests that gold may be forming a bottom.
• Gold is also considered a refuge investment, but its price has been under pressure due to investors' regained confidence in the stock market and growth-sensitive commodities.
• Private-sector jobs in the US rose by 187,000 last month, according to ADP and Macroeconomic Advisers, further undermining gold's role as a refuge.
• The ICE Futures U.S. Dollar Index was up 0.05% due to political instability in Egypt and uncertainty over the euro zone's debt problems.
• Copper, a growth-sensitive commodity, is trading near record highs above $4.50 a pound.

Statistics:

• Gold futures fell by $3.40, or 0.3%, to $1,336.90 a troy ounce.
• The ICE Futures U.S. Dollar Index was up 0.05%.
• Private-sector jobs in the US rose by 187,000 last month.
• ADP and Macroeconomic Advisers reported a job gain of 187,000 in January, exceeding economists' expectations of 143,000.
• Copper is trading near record highs above $4.50 a pound.

Sources:

• Comtex
• Dow Jones Commodities News
• New York Mercantile Exchange
• ICE Futures
• Automatic Data Processing Inc. (ADP)
• Macroeconomic Advisers
• Matt Whittaker, Dow Jones Newswires.