{"id":36871,"date":"2012-11-02T02:55:00","date_gmt":"2012-11-02T02:55:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-settle-lower-11\/36867\/"},"modified":"2012-11-02T02:55:00","modified_gmt":"2012-11-02T02:55:00","slug":"gold-prices-settle-lower-11","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-prices-settle-lower-11\/36871\/","title":{"rendered":"Gold Prices Settle Lower"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">Gold prices<\/a> settled lower on Thursday after the U.S. dollar firmed up in the wake of better than expected economic indicators; besides investors adopted a wait and watch policy ahead of the nonfarm payrolls report and presidential elections put lid on gains.<\/p>\n<p>U.S. <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> futures\u00a0for December delivery settled down 0.2 percent, or $3.60, at $1,715.50 while Spot gold\u00a0was trading lower 0.3 percent at $1,713.89 an ounce.<\/p>\n<p>The SPDR Gold Trust (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=GLD\" target=\"_blank\" rel=\"noopener\">NYSE: GLD<\/a>) ended the day 0.47% lower at $166.08.<\/p>\n<p>Bullion, which touched its yearly high of $1,795.69 an ounce on October 5 after the <a href=\"http:\/\/www.knowfinance.com\/federal-reserve-system-fed\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> launched its third round of quantitative easing, retreated gradually towards $1,700 mark since then as investors struggled to find any clear directions.<\/p>\n<p>While falling quarterly profits and series of lackluster economic indicators from across the world (in October) put a question mark on gold\u2019s inflation hedge appeal at that moment, looming threat of spending cuts from Washington and uncertainty with regard to presidential elections kept investors in the sidelines for now.<\/p>\n<p>On Thursday, gold prices felt further pressure from stronger dollar, which gained sharply against a basket of major traded currencies following the release of unexpectedly strong U.S. economic indicators.<\/p>\n<p>Gold prices and U.S. dollar, in general, tends to move in opposite direction as most commodities which are internationally priced in U.S. dollars become expensive to buy for those dealers who deal in currencies other than the greenback, hurting the demand for commodities.<\/p>\n<p>The ICE dollar index, a gauge on U.S. unit\u2019s performance against a basket of six major traded currencies, climbed to 80.084 on Thursday from 79.903 on Wednesday in North American trade.<\/p>\n<p>Also, improving U.S. economic data resulted in across-the-board rally in the equity markets, prompting investors to close bullish bets on gold in favor of better performing equity markets.<\/p>\n<p>However, with China\u2019s economy eventually showing marked improvement, there is a strong chance that gold prices could rebound in the mid to long term. On Thursday, an official manufacturing PMI reading for October stood at 50.2, up from 49.8 in September. Improving manufacturing activities clearly points towards improvement in the overall economy which in turn could fuel the demand for the metal from one of the world\u2019s biggest buyer-China. In addition, the $60 billion injected by the government of China in order to boost infrastructure spending could burnish metal\u2019s allure as inflation-hedge in the coming months.<\/p>\n<p>In its research note, analyst at Commerzbank wrote, \u201cThere are thus increasing signs of the Chinese economy gathering pace again \u2014 indeed, we believe it may already have bottomed out.\u201d<\/p>\n<p>Commenting over improving economic data and its impact on gold prices, HSBC stategists\u2019 said in a research note, \u201cMore robust economic growth again, supported among other things by numerous infrastructure projects, is likely to spark solid demand for commodities in general and for metals in particular, Gold prices are likely to move higher in the short term and may be helped by a pickup in Indian festive buying ahead of Diwali and the Indian wedding season.\u201d<\/p>\n<p>Spotlight on Non-Farm Payrolls Report and The Presidential Elections<\/p>\n<p>Even though market participants are keenly waiting for the outcome of U.S. presidential elections, the Labor Department\u2019s, non-farm payrolls data for October, scheduled to be released on Friday will also keep bullion investors interested as employment numbers could well provide a hint on for how long will the Fed continue with its bond buying program.<\/p>\n<p>\u201cThe ongoing \u00a0program \u2018Operation Twist\u2019 (exchange of bonds with short maturities to ones with long maturities) will expire by the end of the year, thus forcing the Fed to decide whether to pump further liquidity into the economy or not at its December meeting, that means disappointing data is likely to cause speculation about an increase of QE3 towards year-end, thus putting pressure on (the dollar), while surprisingly positive results reduce this likelihood,\u201d said Commerzbank.<\/p>\n<p>Moving onto some other precious metal markets, <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver-price.aspx\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a>\u00a0inched up 0.2 percent to close at $32.26 an ounce. Spot platinum\u00a0settled higher 0.2 percent at $1,563.75 an ounce, and\u00a0palladium\u00a0climbed 1.5 percent to close at $609.22 an ounce.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20121103090216\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fgold-prices-settle-lower-26%2F36871&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-tumble-6\/36936\">\nGold Prices Tumble<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-fall-sharply-despite-strong-jobs-report\/36918\">\nStocks Fall Sharply Despite Strong Jobs Report<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-fall-sharply-silver-prices-also-tumble-3\/36917\">\nGold Prices Fall Sharply; Silver Prices also Tumble<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-extend-losses-in-late-trading-4\/36915\">\nStocks Extend Losses in Late Trading<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-turn-lower-in-mid-day-trading-3\/36911\">\nStocks Turn Lower in Mid-Day Trading<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/curtiss-wright-cw-will-acquire-williams-controls-wmco\/36899\">\nCurtiss-Wright &#8211; CW &#8211; Will acquire Williams Controls &#8211; WMCO<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/applied-industrial-technologies-ait-acquires-hyquip-inc\/36898\">\nApplied Industrial Technologies &#8211; AIT &#8211; Acquires HyQuip, Inc.<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20121103090216im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n<script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script>\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices settled lower on Thursday after the U.S. dollar firmed up in the wake of better than expected economic [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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