2020.01.2218:47:00UTC+00Gold Futures Settle Slightly Lower

Gold prices edged lower on Wednesday, as investors looked for riskier assets amid slightly fading concerns about the coronavirus outbreak after the Chinese government said it is stepping up preventive measures.

The dollar index rebounded after early weakness, but largely seen struggling to move up any significantly higher. After edging down to 97.44 earlier in the day, the index climbed to 97.69 before paring some gains. It was last seen at 97.58, up marginally from previous close.

Gold futures for February ended down $1.20, or about 0.08%, at $1,556.70 an ounce.

On Tuesday, gold futures for February ended down $2.40, or about 0.2%, at $1,557.90 an ounce.

Silver futures for March ended up $0.020 at $17.828 an ounce, while Copper futures for March settled at $2.7650 per pound, down $0.0285 from previous close.

Chinese health officials told the Wall Street Journal that hospitals are stepping up preventive measures and government officials are recommending that people not enter or leave Wuhan.

In economic news, a report from the National Association of Realtors showed existing home sales in the U.S. rebounded by much more than anticipated in the month of December.

NAR said existing home sales spiked by 3.6% to an annual rate of 5.54 million in December after tumbling by 1.7% to a rate of 5.35 million in November. Economists had expected existing home sales to jump by 1.2% to an annual rate of 5.43 million.

With the much bigger than expected monthly increase, existing home sales in December were up by 10.8% compared to the same month a year ago.

On a full-year basis, NAR said total existing home sales came in at 5.34 million in 2019, unchanged from the previous year.