Gold futures surrendered earlier gains to finish lower on Thursday as strength in the U.S. stock market and the dollar offset support from a report showing strong investment demand for precious metals in the first half of 2016.
December gold GCZ6, -0.31% fell $1.90, or 0.1%, to settle at $1,350 an ounce. Prices had traded lower early Thursday, turned higher, then fell back again near the settlement time, trading inversely to moves in the U.S. dollar. Silver for September delivery SIU6, +0.12% finished at $20.02 an ounce, up 15 cents, or 0.7%.
Earlier Thursday, gold appeared to be “gaining support from investors who do not believe in the stock market’s rally,” said Michael Armbruster, principal and co-founder at Altavest, told MarketWatch.
But “a simultaneous rally in gold and the stock market” was not likely to persist, he said. “It looks like gold blinked today, but our outlook over coming weeks is still pointed higher. We can’t help but remain skeptical of the stock market’s rally.”
Industry data released overnight showed underlying demand for gold in the face of scant yield in other so-called safety investments.
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