Gold prices fell on Wednesday as a stronger dollar and gains in equity markets tempered investor appetite for the haven asset. The commodity is under pressure ahead of NFP release.
The most actively traded contract, for December delivery, closed down 0.5% at $1,133.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold rallied to a one-week high on Tuesday as turbulence in global stocks and fears of an economic downturn in China sparked a rush to assets perceived as low risk, like precious metals. Gold doesn’t derive its value from a country or government and has historically weathered financial and economic upheaval better than stocks and bonds, whose value is backed by private or public institutions.
But as stability returns to global stock markets, gold’s allure is fading. The S&P 500 stocks index was recently up 1% at 1933, while the Dow Jones Industrial Average is up 1.1% at 16,236.