Gold futures edged lower Wednesday, losing ground as the U.S. dollar drifted to the upside.
Analysts said gold appeared to take a cue from the U.S. currency, with the ICE U.S. Dollar DXY, +0.21% a measure of the greenback against six major rivals, up 0.2% at 97.459. A stronger dollar can be a negative for commodities, making them more expensive to users of other currencies.
U.S. stocks have continued to inch further into record territory following last week’s so-called phase-one U.S.-China trade deal, also denting haven appetite for gold.
Overall, however, activity remains subdued, said analysts at Oanda, in a note, with gold perhaps the first market to enter “holiday mode” and likely to see choppy conditions “unless there are further delays or hiccups over the phase-one trade deal.”
March copper HGH20, -0.68% was off 0.5% to $2.80 a pound.