Stock Market

Gold rises for second day, bolstered by dollar’s pullback – News Opener

Gold prices traded higher for a second day on Tuesday as the precious metal recovered a little ground following its fifth straight week of losses.

Price action
  • Gold futures for August delivery

    were up $4, or 0.2%, to $1,714.

  • Silver futures

    for September delivery were down 6 cents, or 0.3%, to $18.78.

  • September copper

    fell 4 cents, or 1.3%, to $3.30 per pound.

  • October platinum

    fell $12.20, or 1.5%, to $868 per ounce, while palladium

    for September delivery fell $9.90, or 0.5%, to $1,859 per ounce.

What analysts are saying

Commodities analysts at JPMorgan Chase & Co.

attributed gold’s strength over the past two sessions to the slight pullback in the U.S. dollar.

During this period of intense volatility in Treasury yields, the typical negative correlation between gold and the dollar has intensified.

“Amid the US dollar’s continued broader push higher since the end of May, the 60-day rolling correlation between changes in spot gold prices and the DXY index has strengthened towards -0.56 compared to -0.35 in mid-June and a period of positive correlation as recently as March and April,” said Gregory Shearer, a commodities analyst at JP Morgan, in a note to JPMorgan’s clients.

The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rivals, was down 0.9% to 106.44 early Tuesday.

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