Gold hovers near $1,500 after pulling back from 6-year high

Gold futures edged higher Wednesday, hovering near the $1,500-an-ounce level after pulling back this week from more-than-six-year highs as haven demand dried up on an easing of near-term U.S.-China trade worries and a revival in appetite for stocks.

Gold for December delivery GCZ19, +0.07% on Comex rose 50 cents, or less than 0.1%, to $, 1499.70 an ounce, while December silver SIZ19, +0.13% rose 2.4 cents, or 0.1%, to $18.21 an ounce. Gold, which hit a string of more-than-six-year highs as stocks sold off in August against a backdrop of increased equity market volatility and an escalating U.S.-China trade war, has pulled back this month as equities steadied. Gold is down around 1% so far this week and 1.9% since the end of August.

“So, unless risk appetite turns sour again, or the dollar slumps — say, as a result of hawkish ECB or a very poor U.S. CPI report tomorrow — gold could extend its losses further,” said Fawad Razaqzada, market analyst at Forex.com, in a note, referring to the August consumer-price index.

And gold looks more vulnerable to further weakness than silver, he said, “given the rosier sentiment towards risk assets, with [silver] being supported by its other main use as an industrial material. Hence, or otherwise, the gold-silver ratio has been falling, making silver more appealing (or less attractive to the sellers) in the short term.”

In other metals trading action, December palladium PAZ19, +1.48% rose $8, or 0.5%, to $1,562.10 an ounce, while October platinum PLV19, +1.04% gained $6.30, or 0.7%, to $942.90 an ounce.

December copper HGZ19, -0.27% lost 0.2% to $2.6225 a pound.

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