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Metals Stocks: Gold ends higher, holds above $1,700 an ounce as dollar weakens

the close up of the five rows coins ,and the coins jar that fell, with the back ground is a dark blue graph.

Gold futures settled modestly higher on Tuesday, holding ground above $1,700 an ounce as the U.S. dollar continued to weaken against major currencies, but a slight rise in U.S. Treasury yields kept price gains in check.

Price action

Gold futures for August delivery


climbed 50 cents, or less than 0.1%, to settle at $1,710.70 an ounce.

Silver futures


for September delivery lost 13 cents, or 0.7%, to $18.713 an ounce.

September copper

fell 5 cents, or 1.6%, to $3.291 per pound.

October platinum

rose $2.90, or 0.3%, to $858.90 per ounce, while palladium

for September delivery climbed $5.10, or 0.3%, to $1,854.20 per ounce.

What analysts are saying

“A big drop in the U.S. dollar index this week is limiting selling interest in the precious metals,” said Jim Wyckoff, senior analyst at, in a Tuesday note. “However, rising U.S. Treasury bond yields this week and a wobbly crude oil market are squelching the bulls.”

The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rivals, was down 0.7% in Tuesday dealings, while the yield on 10-year Treasurys

was up 4 points at 3.006%.

The recent move towards dollar parity with the euro has been a “near term headwind for gold,” Michael Cuggino, president and portfolio manager of the Permanent Portfolio Family of Funds, told MarketWatch. “This results primarily from a desire to own U.S. assets overall given current global macro uncertainties.”

The euro
which last week hit a 20-year low below parity with the dollar, rose 0.9% to $1.0238 in Tuesday trading.

Meanwhile, the Federal Reserve’s hawkish commentary and actions to fight inflation have been “more aggressive than their European counterparts who, fearing a broader and deeper recession than may occur in the U.S., have been hesitant to raise rates at the same pace,” said Cuggino. 

“We believe this is a short-term condition and gold will trend higher as the dollar likely weakens as the European Central Bank (and others) begins to raise interest rates more in line with the Fed,” he said. The ECB will hold its next policy meeting on Thursday. Investors may also “again begin to focus on gold’s alternative currency and capital preservation properties verses just an interest rate story.”

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