Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Gold slipped to its lowest in nearly two months on Tuesday as growth optimism tied to Donald Trump’s election victory continued to provide boost to the US dollar.
Spot gold fell 0.9% to $2,595.98 an ounce as of 12:45 p.m. ET, extending its slide from the previous session. US gold futures were down 0.6% to $2,601.50 an ounce in New York.
Meanwhile, a gauge of the US dollar rose to its highest level in a year, making commodities priced in the greenback such as bullion more expensive for most buyers.
Gold has now declined more than 5% since last week’s election, as hedge funds unwound bullish wagers and exchange-traded fund flows turned less supportive amid a widespread rotation into US equities.
The sell-down is also “partly technical” after a break below the 50-day moving average led funds to exit long positions, according to Pepperstone Group Ltd. Head of Research Chris Weston.
“I think this is just a corrective move in a longer-term bullish market. The policies right now are thought to be pretty inflationary. So if we see another wave of inflation coming, then that should drive gold higher,” added Daniel Pavilonis, senior market strategist at RJO Futures.
Still, the precious metal is up more than 25% this year, supported by the Federal Reserve’s easing cycle, central bank purchases and heightened geopolitical and economic risks that drove haven demand.
Investors will look to Wednesday’s core consumer price index report for clues on the Fed’s next steps following a 25-bps cut last week. Traders currently see a 65% chance of another rate cut in December, versus around 80% before Trump’s victory.
(With files from Bloomberg and Reuters)
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