Friday , June 22 2018
Home / Commodity Blog / Gold Climbs Back Above $1,300 on Lower Dollar, Treasuries

Gold Climbs Back Above $1,300 on Lower Dollar, Treasuries

Summary:
Gold futures have climbed back above the crucial ,300 threshold on Tuesday as the US dollar and Treasuries are slumping on trade war concerns. The yellow metal has been hovering around the ,300 mark since the end of May. August gold futures jumped .00, or 0.39%, to ,302.30 per ounce at 17:01 GMT on Tuesday. The positive performance comes one day after gold prices suffered their lowest settlement levels since May 23. The latest declines have left gold in the red by more than 1% year-to-date. Silver, the sister commodity to gold, is edging higher. July silver futures advanced %excerpt%.09, or 0.55%, to .52 an ounce. The white metal has also fallen nearly 4% so far in 2018. Precious metals are benefiting from a weaker US dollar as the greenback slipped 0.15% to 93.92. A lower buck is good

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Matt Jackson writes Gold Slips Despite Weaker Dollar

Andrew Moran writes Gold Edges Higher After Posting Lowest 2018 Settlement

Joseph Y. Calhoun writes Global Asset Allocation Update

Andrew Moran writes Gold Craters After Best Settlement in a Month, Poised for Weekly Loss

Gold futures have climbed back above the crucial $1,300 threshold on Tuesday as the US dollar and Treasuries are slumping on trade war concerns. The yellow metal has been hovering around the $1,300 mark since the end of May.

August gold futures jumped $5.00, or 0.39%, to $1,302.30 per ounce at 17:01 GMT on Tuesday. The positive performance comes one day after gold prices suffered their lowest settlement levels since May 23. The latest declines have left gold in the red by more than 1% year-to-date.

Silver, the sister commodity to gold, is edging higher. July silver futures advanced $0.09, or 0.55%, to $16.52 an ounce. The white metal has also fallen nearly 4% so far in 2018.

Precious metals are benefiting from a weaker US dollar as the greenback slipped 0.15% to 93.92. A lower buck is good for dollar-denominated commodities like gold and silver because it makes it more expensive for foreign investors to purchase.

Metals commodities are taking advantage of sliding US Treasuries, too. The benchmark 10-year Treasury note yield tumbled to 2.90%. Bonds and gold tend to trade inversely because rising yields send the yellow metal lower, driving investors into yield-bearing assets.

With the market anticipating the Federal Reserve to raise interest rates three more times this year, as opposed to just two, gold’s gains may be capped in the coming weeks. Gold is generally sensitive to a rising-rate environment.

In economic news, the Institute for Supply Management (ISM) index slid to 58.6 in May, down from 58.8 in April. The purchasing managers index rose to 56.8 last month, up from 55.7 in April. Last week, the US government reported that the national economy added 223,000 jobs in May, helping the unemployment rate slip to 3.9%.

In other metals markets, July copper futures surged $0.06, or 2.04%, to $3.199 per pound. July platinum futures shed $3.60, or 0.40%, to $900.00 an ounce. July palladium futures plunged $8.80, or 0.89%, to $985.50 per ounce.

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2018. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *