Gold futures settled lower on Wednesday, coming off a six-year high and snapping a four-session winning streak.
Gold prices edged lower as the dollar stayed fairly steady following Federal Reserve Chairman Jerome Powell playing down expectations of aggressive interest rate cuts.
Gold futures for August ended down $3.30, or 0.2%, at $1,415.40 an ounce.
On Tuesday, gold futures for August rose to a six-year high of $1,442.90 and ended with a small gain at $1,418.70, the highest settlement since August 28, 2013.
Silver futures for July ended down $0.006, at $15.294 an ounce, while copper futures for July ended the day down $0.0220 at $2.7135 per pound.
On Tuesday, Powell pushed back against pressure from President Donald Trump to cut interest rates, saying monetary policy shouldn’t overreact to any individual data point or short-term swing in sentiment.
St. Louis Fed President James Bullard also said on Tuesday that a steep 50 basis points cut in July would be too much.
Mild optimism about a potential U.S.-China trade deal was generated after Treasury Secretary Steven Mnuchin told CNBC, “We were about 90 percent of the way there and I think there’s a path to complete this.”
However, he did not shed any light on the sticking points to achieving the final 10 percent.
Mnuchin refused to speculate on whether a deal would be completed but said he was “hopeful,” noting “President Trump and President Xi have a very close working relationship.”
Trump and Xi are likely to meet on the sidelines of the upcoming G20 summit later this week
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