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Gold futures advanced Tuesday after back-to-back losses saw prices briefly dip below $2,000 an ounce a day earlier, for the first time in a week.
Price action
-
Gold for June delivery
GC00,
+0.67% GCM23,
+0.67%
climbed by $5.60, or 0.3%, to $2,012.60 an ounce on Comex. -
May silver
SI00,
+0.94% SIK23,
+0.94%
traded at $25.215 an ounce, up 12.7 cents, or 0.5%. -
June palladium
PAM23,
+4.45%
rose $65, or 4.2%, to $1,625.50 an ounce, while July platinum
PLN23,
+3.29%
was up $25.80, or 2.4%, at $1,085.40 an ounce. -
May copper
HGK23,
+0.43%
added nearly a cent, or 0.1%, to trade at $4.071 a pound.
Market drivers
”Gold is attempting to nurse the deep wounds inflicted by the recent selloff that saw prices fall more than 2% in two days,” said Lukman Otunuga, manager, market analysis at FXTM.
Renewed expectations around the Federal Reserve extending its rate hike cycle deeper into 2023 ”hammered zero-yielding gold,” he said. ”This could be another volatile week for the precious metal due to more speeches from Fed officials.” See the U.S. economic calendar.
On Friday, Fed Gov. Christopher Waller said the Fed needs to continue raising interest rates because inflation is “still much too high.”
After reaching their highest levels in more than a year last week, gold prices touched an intraday low of $1,993.40 on Monday, the lowest since April 10 for most-active contract, FactSet data show.
Still, prices for the yellow metal on Comex had settled at $2,055.30 on Thursday, marking the second highest finish on record, trading within striking distance of their record-high settlement of 42,069.40 on Aug. 6, 2020.
The most-active contract for silver on Thursday also ended that session at its highest since April 2022.
“After such strong gains, both metals are in need of consolidating their gains, especially after relative strength indicators began flashing overbought in both metals,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold futures logged their record settlement level on Aug. 6, 2020, when the most-active contract finished the session at $2,069.40 per ounce, according to Dow Jones Market Data.
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