Gold futures saw muted trade early Tuesday as a rise in global stocks, perceived as risk assets, offset a slightly weaker dollar, which capped the traditional haven metal’s moves.
Gold for August delivery on Comex GCQ8, +0.15% edged up $1.80, or nearly 0.2%, to $1,227.40 an ounce, after putting in a loss in the prior session. Prices had settled at $1,224 on Thursday, the lowest for a most-active contract in about a year. September silver SIU8, +0.81% meanwhile, added 9 cents, or 0.6%, to $15.510 an ounce.
The ICE U.S. Dollar Index DXY, -0.14% a measure of the U.S. currency against a basket of six major rivals, edged up down 0.2% to 94.49 Monday.
SPDR Gold Shares GLD, -0.48% the largest exchange-traded fund to invest directly in physical gold, shed 0.5% on Monday, while the iShares Silver Trust SLV, -0.82% lost about 0.8% to start the week.
Both gold and silver have been in the doldrums in recent weeks and months as the dollar has gained traction. Silver is off 9.5% so far this year, while gold futures are down about 6.3% in 2018. Meanwhile, the dollar index has advanced 2.5% in the first seven months of the year.
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A stronger dollar can make commodities priced in the currency more expensive compared against those using other monetary units.
Independent market analyst Stephen Todd, in a late-Monday research note said there was “still no sign of a trading bottom,” in gold and has recommended holding cash as a better alternative in the near term.
Delivering a further headwind for the yellow metal on Monday was a surge in the rates of government bonds, notably in the U.S., with the 10-year Treasury note TMUBMUSD10Y, +0.03% punching up to 2.963%, representing a six-week rate peak—a move that can undercut some appetite for precious metals that don’t offer a yield.
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Looking ahead, a reading of house prices is due at 9 a.m. Eastern Time, data on economic activity including the flash Markit manufacturing and services purchasing managers indexes, both for July, are due at 9:45 a.m. Separately, a regional manufacturing survey for Richmond is set to be released at 10 a.m.
Other Comex traded metals saw more pronounced moves higher. September palladium PAU8, +1.67% rose $14.60, or 1.6%, to $917.60 an ounce, while October platinum PLV8, +1.56% advanced $12.40 an ounce, or 1.5%, at $843.30 an ounce. September copper HGU8, +1.18% meanwhile, added 2 cents, 0.8%, to $2.768 a pound.
