Gold prices climbed to their highest level in four weeks on Tuesday as a weaker U.S. dollar and lower Treasury yields helped keep prices of precious metals and commodities elevated.
Price action
-
Gold futures for August delivery
GC00,
+0.79% GCQ23,
+0.79%
gained $9.60, or 0.5%, to $1,966 per ounce on Comex. -
Silver futures for September delivery
SI00,
+0.17% SIU23,
+0.17%
rose by 7 cents, or 0.3%, to $25.10 per ounce. -
October platinum
PLV23,
+0.39%
fell by 30 cents, or less than 0.1%, to $987 per ounce, while palladium for September
PAU23,
+2.10%
rose by $13.40, or 1%, to $1,294.50 per ounce. -
Copper futures for September
HGU23,
-0.59%
declined by 3 cents, or 0.8%, to $3.81 per pound.
Market drivers
“Several mildly bullish elements are working in favor of the precious metals market bulls today, including a weaker U.S. dollar index, firmer crude oil prices and a dip in U.S. Treasury yields,” said Jim Wyckoff, senior analyst at Kitco.com.
Gold prices have recovered in the past week from three month lows following the release last Wednesday U.S. consumer-price index for June which was heralded by market analysts as a possible inflection point in the Federal Reserve’s battle against inflation. Last week’s U.S. CPI report showed consumer prices grew by just 0.2% in June, the slowest monthly pace since August 2021.
As a result, prices of gold, silver and other commodities like crude oil and copper have risen, bolstered by a softer U.S. dollar and lower Treasury yields. Lower Treasury yields make assets like gold, which doesn’t offer investors a yield, more attractive by comparison. Bond yields move inversely to prices.
The ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against other major currencies, slipped Tuesday. The 10-year Treasury yield
TMUBMUSD10Y,
fell by 4.3 basis points to 3.757%.
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