Gold futures advanced on Tuesday, with the most-active futures contract on track to settle above the $2,000 level for a sixth straight session, as a softer U.S. dollar provided support to the yellow metal.
Price action
-
Gold futures for June delivery
GC00,
+0.67% GCM23,
+0.67%
rose by $15.20, or 0.8%, to settle at $2,019 per ounce on Comex. Prices for the most-active contract has now settled above $2,000 for six consecutive sessions, even though prices posted declines in the last three sessions, FactSet data show. -
Silver futures for May delivery
SI00,
+1.19% SIK23,
+1.19%
gained 27 cents, or 1.1%, to $25.19 per ounce. -
June palladium
PAM23,
+0.55%
gained $36, or 2.6%, to $1,443.60 per ounce , while July platinum
PLN23,
+0.63%
rose by $2.20, or 0.2%, to $1,005.10 per ounce. -
Copper prices due in May
HGK23,
+0.31%
gained 4 cents, or 1.1%, to $4.02 per pound.
Market drivers
Several factors helped to bolster gold and silver prices Tuesday, including a weaker U.S. dollar, signs of cooling inflation in China, and commentary from the International Monetary Fund that higher interest rates are transitory and that low interest rates will likely return, according to Jim Wyckoff, senior analyst at Kitco.com.
Read: High inflation and interest rates to hobble U.S. and global economies for several years, IMF says
“Technically, the gold futures bulls have the solid overall near-term technical advantage,” Wyckoff said.
The ICE U.S. Dollar Index
DXY,
a gauge of the greenback’s strength against a basket of rivals, was down 0.4% at 102.21.
Gold futures settle above $2,000 for a sixth straight session
Recent price action “re-confirms that the $2,000 psychological level remains a pivotal point for bulls and bears,” Lukman Otunuga, manager, market analysis at FXTM, told MarketWatch. “Expect the pending economic reports and risk events to influence whether gold concludes the week above or below this level.”
Gold investors looked ahead to U.S. inflation data due out this week, with the March consumer price index scheduled for release Wednesday and producer price index out Thursday.
“Since inflation data is the key anchor for determining the future direction of prices, it is probable that gold prices will continue to be volatile,” Naeem Aslam, chief investment officer at Zaye Capital Markets told MarketWatch.
“We feel that the moment to purchase a hedge against this risk” — such as haven gold, “is right now because, if the inflation statistic continues to demonstrate stoutness, it has the potential to disrupt the recovery in the stock market,” he said.
Also see: Newmont shares slip after miner boosts Newcrest offer to nearly $20 billion
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