UPDATE: Gold edges lower, but clings to gain for the quarter
By Myra P. Saefong and William Watts, MarketWatch
Traders weigh tax-cut prospects, interest-rate hike expectations
Gold edged lower Friday, on track to post losses for the week and month on the heels of overall strength in the dollar, but prices for the metal held on to a gain for the quarter.
Traders weighed the likelihood of success for Republican tax-cut proposals as well as expectations for another rate increase by the Federal Reserve before year-end.
Gold for December delivery on Comex fell $1.60, or 0.1%, to $1,287.10 an ounce, with prices, based on the most-active contracts, down roughly 0.8% for the week and set to lose 2.6% for the month. For the quarter, however, prices were up around 3.6%.
December silver shed 4.2 cents, or 0.3%, to $16.805 an ounce--looking at losses of 1% for the week and 4.3% for the month. Prices were poised to log a 0.5% rise for the quarter.
"A more hawkish shift in Fed policy expectations, good economic data, and optimism about tax reform are support the reflation argument, which is bad for gold prices in the months ahead," said Tyler Richey, co-editor of the Sevens Report.
"But if any catalyst, be it geopolitical (think North Korea) or otherwise, changes the outlook for any of those three bearish influences, gold could rebound back toward the mid-$1,300s in a hurry," he told MarketWatch.