Gold trades higher after breaking string of 4 straight weekly declines
Gold futures gained ground Monday, finding support after snapping a string of four straight weekly declines.
Gold for June delivery
GC00,
GCM22,
rose $20.50, or 1.1%, to $1,862.60 an ounce on Comex, after rising 1.7% last week as it bounced back from a three-month low. July silver
SIN22,
was up 2.4% at $22.185 an ounce.
Gold found support last week as Treasury yields, which move opposite to price, continued a retreat after the 10-year rate hit a 3 1/2-year high earlier this month. Rising yields can be a negative for gold because they raise the opportunity cost of holding nonyielding assets. A weaker dollar also helped gold, making commodities priced in the unit less expensive to users of other currencies.
Gold last week “benefitted from the combination of falling interest rates (nominal and real) and a pullback in the recently relentless dollar rally,” wrote analysts at Sevens Report Research in a Monday note. “Looking ahead, gold remains in a countertrend pullback in an otherwise upward-trending market, but we will continue to watch real rates and the dollar as key influences. If they make new highs, it will be very difficult for gold to hold above $1,800” an ounce.
In other metals trade, July copper
HGN22,
rose 1.5% to $4.341 a pound.
July platinum
PLN22,
jumped 3.2% to $971.30 an ounce, while June palladium
PAM22,
rose 3.7% to $2,010.50 an ounce.
