Continue hear wow smudge unexpected US numbers =go figure those un-reals... could there be a election falsity for puppetmeister oh but =

Gold Retreats after the Dollar Rallies on Hawkish Fed Comments

Rich Asplund - Barchart - Tue Sep 22, 2:22PM CDT

Dec Comex gold (GCZ20) on Tuesday closed down -3.0 (-0.16%), and Dec silver (SIZ20) closed up +0.136 (+0.56%).

Precious metals prices on Tuesday settled mixed. A rally in the dollar index to a 1-3/4 month high and hawkish Fed comments weighed on gold prices Tuesday, while better-than-expected U.S. economic news was positive for industrial metals demand and silver prices.

Gold prices gave up an early advance Tuesday as the dollar index rallied to a 1-3/4 month high after Chicago Fed President Evans said, "We could start raising interest rates before we start averaging 2% in inflation."

Tuesday's U.S. economic data was bearish for gold but supportive for industrial metals demand and silver prices. U.S. Aug existing home sales rose +2.4% m/m to 6.00 million, right on expectations and the highest in 13-1/2 years. Also, the Sep Richmond Fed manufacturing survey current conditions index unexpectedly rose +3 to a 2-year high of 21, stronger than expectations for a decline to 12.

Comments on Tuesday from ECB Executive Board member Panetta were bullish for gold demand as a store of value when he said he is worried about the sheer size of the downside risks to the Eurozone economy and that he supports preemptively adding monetary stimulus to fend off the risk of the economy worsening.

Gold also has support from the Covid pandemic that has curbed global growth prospects and prompted the world's central banks to maintain or even expand their QE programs, which is bullish for gold demand as a store of value. The Covid virus has now infected 31.530 million persons globally, with deaths exceeding 970,000.

Precious metals still have safe-haven support on heightened U.S. political tensions, U.S/China tensions, and the risks of no-deal Brexit.

Safe-haven demand and dovish central bank expectations have sparked fund buying of precious metals in recent months. Long gold positions in ETFs on Monday rose to a new record high of 3,451.34 metric tons (data since 2002). However, liquidation of long silver positions has emerged with long silver positions in ETFs falling to a 1-1/2 month low Monday, down from Aug's record high of 897.10 million troy ounces.

https://www.barchart.com/story/futures/quotes/GCV20/overview/306102/gold-retreats-after-the-dollar-rallies-on-hawkish-fed-comments