Gold Futures Tumble as Geopolitical Risk Meets Monetary Policy Uncertainty

Gold futures are trading lower on Tuesday, September 8th, as investors weigh two opposing forces that are affecting demand for the precious metal. According to Rania Gule of XS.com, geopolitical risk is supporting demand for gold as a safe-haven asset, but the growing possibility of restrictive U.S. monetary policy is increasing the opportunity cost of holding non-yielding assets like gold.

In New York, December gold delivery is down 0.8% at $4,440.60 per troy ounce, while silver is down 0.2% at $66.59 per troy ounce. The market will be closely watching U.S. inflation data scheduled for release later this week.