Gold prices advanced on Monday to trade just shy of $2,000 an ounce as traders reversed an early-session drop while initial strength in the U.S. dollar faded.
Price action
-
The June gold contract
GC00,
+0.41% GCM23,
+0.41%
rose by $6.70, or 0.3%, to $1,992 an ounce on Comex. -
Silver futures expiring in May
SI00,
+0.22% SIK23,
+0.22%
fell by 7 cents, or 0.3%, to $24.09 an ounce. -
June palladium
PAM23,
+0.07%
declined by $4, or 0.3%, to $1,464 an ounce, while July platinum
PLN23,
-0.72%
fell by $6.50, or 0.6%, to $996 an ounce. -
Copper futures due in May
HGK23,
-0.24%
declined by 1 cent, or 0.4%, to $4.08 a pound.
Market drivers
Precious metals analysts were paying close attention to technical levels for the yellow metal as dip-buyers continued to flock to gold, bolstered by a weaker U.S. dollar, according to Marios Hadjikyriacos, senior investment analyst at XM.
“Gold was on the ropes as the new trading week got under way, feeling the heat of a recovery in the U.S. dollar and Treasury yields. Yet, the losses were trimmed as buyers stepped in to defend the $1.950/ounce region, which suggests dip-buying is still the game plan among investors as the recent Fed liquidity injections work their magic,” Hadjikyriacos said.
The ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against a basket of rivals, was down 0.2% at 102.36 in recent trade after trading above 103 earlier.
Elsewhere in commodity markets, oil prices surged, driven by a surprise production cut from Saudi Arabia and other OPEC+ member countries.
West Texas Intermediate crude for May delivery
CL00,
CLK23,
rose by $4.88, or 6.4%, to $80.68 per barrel.
