Gold Steadies as Market Weighs Turmoil in South Korea and France
Gold steadied as traders took stock of political turmoil in South Korea and France, which has buoyed demand for haven assets.
Bullion was little changed near $2,635 an ounce on Wednesday, after rising 0.2% in the previous session.
South Korean President Yoon Suk Yeol made a surprise declaration of martial law on Tuesday night, before rescinding the decree just hours later. Opposition parties have since submitted a motion calling for his impeachment. In France, President Emmanuel Macron called on lawmakers to reject a vote that would topple the government.
The precious metal has fallen more than 5% from a record high in late October, as the dollar rallied following Donald Trump’s election win and tensions eased in the Middle East. Still, prices remain about 28% higher this year, supported by US monetary easing and central-bank purchases.
US jobs openings data suggested demand for workers is stabilizing, which is important for Federal Reserve officials who are trying to avoid any further weakening in the labor market as they gradually lower interest rates. US nonfarm payroll figures due Friday are the next major data point before the bank’s Dec. 18 meeting, where a 25-point cut is expected.
Spot gold was at $2,634.18 an ounce by 1:06 p.m. in London, erasing an earlier gain. Copper was down 0.7%, while most other industrial metals traded in a narrow range. The Bloomberg Dollar Spot Index rose 0.2%. Silver, platinum and palladium were all lower.
Source: Bloomberg
