By Rachel Koning Beals
Gold futures prices fell and the U.S. dollar mostly gained on Thursday as global markets further stabilized from the volatile trading that followed the U.K. split with the European Union.
Currency, metals, bond and stock gyrations are likely to persist as the tactical unwinding of the relationship is scrutinized and as the U.K. picks its next prime minister, but, for now, “haven” gold has lost some of its appeal.
Silver and base metals had been the stand-out gainer in the metals group over recent sessions, and Thursday was no exception; silver posted slim gains on the heels of a steep Wednesday advance.
However, August gold GCQ6, -0.31% fell $6.30, or 0.5%, to $1,320.70 an ounce. Gold closed at $1,326.90 on Wednesday, returning to the best settlement level since July 11, 2014. After spotty, post-Brexit volatility, weekly gains are in jeopardy but gold futures remain up more than 25% year to date.
The dollar moved opposite of gold Thursday in a return to their typical inverse relationship. The ICE U.S. Dollar Index DXY, +0.23% was up 0.2%.
Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.10% gained 0.1%. The VanEck Vectors Gold Miners ETF GDX, +1.58% advanced 0.9%.
Investors have already poured $12.2 billion into SPDR Gold Shares so far this year, according to Bloomberg data. That tops the inflow for all of 2009, the former high-water mark since the fund was created 12 years ago. On Wednesday, the gold ETFs tracked by Bloomberg increased their holdings for the fifth consecutive day.
The September silver contract SIU6, +1.02% gained 7 cents, or 0.4%, at $18.47 an ounce. Silver closed at $18.41 on Wednesday, its highest settlement since mid-September of 2014.
The closely watched gold/silver ratio has dropped to below 72, its lowest figure in 13 months. The gold-to-silver ratio is the amount of silver, in ounces, that it takes to purchase one ounce of gold.