Metals Stocks: Gold edges lower as stock-market rally takes shine off haven assets

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Gold futures traded slightly lower Wednesday, remaining under pressure as U.S. stocks continue to push into record territory on optimism over trade talks between Washington and Beijing.

Gold for December delivery GCZ19, -0.19%  on Comex was off $2.70, or 0.2%, at $1,457.60 an ounce, while December silver SIZ19, -0.29%  declined 5 cents, or 0.3%, to $16.995 an ounce.

The yellow metal is down 0.4% so far this week, consolidating around the $1,460-an-ounce level, as major U.S. stock indexes pushed to record finishes Monday and Tuesday, buoyed by continued optimism over trade following upbeat comments on U.S.-China negotiations out of Washington and Beijing. A positive tone for assets perceived as risky is often a negative for assets, like gold, that are considered traditional havens. Gold bulls argued that dynamic could be set to change.

“The upward momentum for riskier assets is in danger of petering out, with investors perhaps needing clear signs of progress beyond mere snippets of positive spin regarding the potential U.S.-China trade truce,” said Han Tan, market analyst at FXTM.

Tan also noted data from China early Wednesday that showed industrial profits continued to contract in October.

“Markets can only ignore the dismal economic data for so long, with the overnight release of China’s October industrial profits falling 9.9% drawing attention to the strains faced by the world economy,” Tan said.

Traders were bracing for a deluge of U.S. economic data a day ahead of the Thanksgiving Day holiday, which will see U.S. financial markets close on Thursday followed by an abbreviated trading session on Friday.

Read: When do markets close for Thanksgiving?

U.S. weekly jobless claims data is due at 8:30 a.m. Eastern. Separately, a revised estimate of third-quarter gross domestic product will be released at the same time, along with figures on October durable-goods orders.

The November Chicago-area purchasing managers index is due at 9:45 a.m. Eastern, while October personal income and spending data is up for release at 10 a.m. Eastern. A pending home sales index for October is also due at that time, while the Fed’s “Beige Book” compilation of anecdotal economic information from across the country is set for release at 2 p.m. Eastern.

In other metals trade, January platinum PLF20, -0.55%  fell 0.6% to $906.30 an ounce, while December palladium PAZ19, +0.10%  edged up 0.1% to $1,784 an ounce.

December copper HGZ19, +0.13%  rose 0.1% to $2.6805 a pound.

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