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 ?
for August delivery gained $3.40, or 0.2%, to $1,735.
for September delivery fell 30 cents, or 1.6%, to $18.83, a new two-year low.
for October delivery were down $19.30, or 2.2%, to $841 per ounce.
for September delivery were down $53, or 2.4%, to $2,119 per ounce.
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
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
Dow Jones Industrial Average
and Nasdaq Composite
looked headed for a lower open, while the dollar,
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’
futures were down 0.5%.
futures were down 0.6%, or nearly 200 points
The dollar was trading within one cent of parity with the euro
The 10-year Treasury yield
shed 6.6 basis points to trade at 2.93%, dropping further below 3%.