Stock Market

Gold steadies near 9-month lows, silver slides to weakest since summer 2020 – News Opener

Gold traded modestly higher on Tuesday after recording its weakest settlement level in nine months as it continues to feel the pressure from a stronger U.S. dollar.

What are prices doing ?
  • Gold futures
    GC00

    GCQ22
    for August delivery gained $3.40, or 0.2%, to $1,735.

  • Silver futures
    SIU22
    for September delivery fell 30 cents, or 1.6%, to $18.83, a new two-year low.

  • Platinum futures
    PLV22
    for October delivery were down $19.30, or 2.2%, to $841 per ounce.

  • Palladium futures
    PAU22
    for September delivery were down $53, or 2.4%, to $2,119 per ounce.

  • Copper prices
    HGU22
    for September delivery were down 9 cents, or 2.5%, to $3.34 per pound.

What’s driving the market ?

Since gold hit its 2022 peak north of $2,000 per ounce back in March, it has been largely driven by the strong dollar which is at a 20 year high based on the index
DXY
measuring its strength against major currencies, while higher Treasury yields, which have stolen some of the precious metals’ luster in the eyes of investors.

Analysts at TD Securities blamed relative weakness in precious metals and crude oil on the broader “risk off” mood on Tuesday. The S&P 500
SPX,
Dow Jones Industrial Average
DJIA
and Nasdaq Composite
COMP
looked headed for a lower open, while the dollar,
EURUSD
which has established itself as the market’s preferred safe-haven asset, continued to climb toward parity with the euro.

See: Euro slips closer to parity as Goldman warns the ECB could respond more ‘forcefully’ to a weak currency’

Other markets
  • S&P 500
    ES00
    futures were down 0.5%.

  • Dow
    YM00
    futures were down 0.6%, or nearly 200 points

  • The dollar was trading within one cent of parity with the euro
    EURUSD.

  • The 10-year Treasury yield
    TY00
    shed 6.6 basis points to trade at 2.93%, dropping further below 3%.

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