Stock Market

Gold prices rise; silver on track to end longest losing streak since May – News Opener

Gold prices climbed on Tuesday, looking to put a halt to the yellow metal’s longest losing streak since early July, while silver prices were poised to break a six-session streak of losses.

Price action
  • Gold futures
    GCZ22,
    +0.87%

    for December delivery traded up $15.40, or 0.9%, at $1,763.80 per ounce on Comex, following six session losses in a row for the most-active contract.

  • Silver futures
    SIU22,
    +1.10%

    for September delivery tacked on 19.7 cents, or 1%, to $19.075 per ounce. The move for silver also follows six straight sessions of declines, the longest since the 10-session fall ended May 2, FactSet data show.

  • Palladium futures
    PAU22,
    +0.21%

    for September delivery gained $4.20, or 0.2%, to $1,986 per ounce, while platinum futures
    PLU22,
    -2.26%

    for October delivery rose $5.70, or 0.7%, to $873.70 per ounce.

  • Copper futures
    HGU22,
    +1.67%

    for September delivery advanced 6 cents, or 1.6%, to $3.711 per pound.

What analysts are saying

Rising Treasury yields and the U.S. dollar’s strength were blamed for driving the weakness in precious metals prices over the past week, analysts said.

The precious metal has been smothered by a stronger dollar, rising Treasury yields and [Federal Reserve interest] rate hike jitters,” said Lukman Otunuga, manager, market analysis at FXTM, in a market update.

Read: Fed’s Bullard says he is leaning toward backing 0.75 percentage point hike in September

The ICE U.S. Dollar Index
DXY,
-0.51%
,
a gauge of the dollar’s strength against a basket of rivals, was down 0.5% at 108.477, while the 10-year Treasury yield
TMUBMUSD10Y,
3.009%

held above 3%.

The potential for volatility in gold is “high this week,” thanks to Jackson Hole and Fed Chairman Jerome Powell’s remarks expected Friday, which could potentially act as a “fresh fundamental spark for gold,” said Otunuga.

Read the Fed Jackson Hole preview: Powell to stress a recession won’t stop Fed’s fight against high inflation

Gold’s next key level of support stands at $1,724, said Otunuga. A fall below that level may mean that a selloff towards $1,700 is in the cards, while a move back above $1,752 “may open a path back towards $1,770 and $1,800,” he said.

Economic data released Tuesday showed U.S. businesses grew more slowly in August. The S&P U.S. services index dropped to 44.1 from 47.3, based on “flash” survey. It was the fifth decline in a row.

Hear from Ray Dalio at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed.

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