Gold futures rose Tuesday, climbing above the significant $1,800 an ounce level to start the month, as weakness in the U.S. dollar and a retreat in bond yields helped to foster some buying in bullion.
The precious metal, however, has been mostly caught in a range around $1,850 and $1,750 an ounce since November.
April gold
GCJ22,
GC00,
was trading $11.30, or 0.7%, higher to trade at $1,807.40 an ounce, at last check, following a 0.6% gain a day ago, which helped to reduce a monthly decline to 1.8%, the biggest monthly fall since September.
Some bullish gold buyers have been upbeat about the yellow metal and see it eventually taking a more pronounced step higher, as concerns about the economy and the stock market, which has been increasingly more volatile in the past several weeks, persist.
“Rising interest rates raise the opportunity cost of holding gold, making it less appealing to investors. However, the dollar index has retreated from multi-month highs, which has supported gold prices to some extent,” wrote Naeem Aslam, chief market analyst at AvaTrade, in a daily note.
“In the short term, investors should keep in mind that rising consumer prices and greater volatility in stock markets will likely support the precious metal,” the analyst wrote.
Meanwhile, silver for March delivery
SIH22,
added 62 cents, or 2.8%, to $23.04 an ounce, following a 0.4% gain on Monday, which helped to pare a monthly loss to 4.1%.
