Gold rebounds slightly as record-high stocks edge down

Source: Xinhua| 2017-10-24 04:14:43|Editor: yan
Video PlayerClose

CHICAGO, Oct. 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange started a rally on Monday as the upbeat stock market lost some steam.

The most active gold contract for December delivery rose 40 U.S. cents, or 0.03 percent, to close at 1,280.90 dollars per ounce.

The Republican-controlled Senate last week passed a budget resolution for fiscal year 2018, which was regarded as a big step to push forward President Donald Trump's tax reform without support from Democrats.

The resolution will allow Trump administration to add up to 1.5 trillion dollars to the deficit over a decade.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.11 percent to 93.90 as of 1716 GMT.

While the U.S. dollar remained strong, gold continued to slip in earlier trading on Monday.

However, the equities started to edge down following record highs, which in turn supported the gold futures.

The Dow Jones Industrial Average first climbed, adding 10.01 points, or 0.04 percent to 23,338.64 points as of 1726 GMT. But it later traded in the negative territory, with the S&P 500 and Nasdaq following the downbeat.

When equities post losses, gold usually goes up.

As for other precious metals, silver for December delivery fell 0.3 cent, or 0.02 percent, to close at 17.075 dollars per ounce. Platinum for next January inched up 40 cents, or 0.04 percent, to settle at 927.20 dollars per ounce.