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Gold Futures Snap 10-day Winning Streak, Settle Notably Lower

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Gold Futures Snap 10-day Winning Streak, Settle Notably Lower

Gold prices drifted lower on Wednesday, snapping a long ten-session winning streak, as profit taking and an increase in risk appetite amid hopes the ongoing tensions in the Middle East may not escalate into a full-fledged military conflict, weighed on the commodity.

The dollar’s continued strength against most major currencies contributed as well to the yellow metal’s decline.

The dollar index was up by about 0.3% at 97.29, coming off an early low of 96.82.

Gold futures for February ended down $14.10, or about 0.9%, at $1,560.20 an ounce.

On Tuesday, gold futures for February ended up $5.50, or 0.4%, at $1,574.30 an ounce, the highest settlement since April 2013.

Silver futures for March declined $0.226, to settle at $18.167 an ounce, while Copper futures for March settled at $2.8120 per pound, gaining $0.0185 for the session.

Data released by payroll processor ADP showed private sector employment jumped by more than anticipated in the month of December.

ADP said private sector employment surged up by 202,000 jobs in December after climbing by a substantially upwardly revised 124,000 jobs in November.

Economists had expected employment to increase by about 160,000 jobs compared to the addition of 67,000 jobs originally reported for the previous month.

On the geopolitical front, President Donald Trump delivered a statement responding to last night’s attack by Iran on several U.S. military bases in Iraq. Trump said U.S. would hit Iran with new sanctions but not respond militarily.

Trump confirmed earlier reports that there were no American casualties as a result of Iran’s missile strikes.

Iran’s attack initially raised concerns about an escalation of the confrontation between the U.S. and Iran.

However, Trump said, “Iran appears to be standing down,” which he called a “good thing for all parties concerned and a very good thing for the world.”

The latest remarks by Trump reflect a significant shift from recent comments by the president threatening to use military force in response to Iran’s retaliation for the U.S. killing of Quds Force Commander Qasem Soleimani last week.

The material has been provided by InstaForex Company – www.instaforex.com