Gold rebound pauses after snapping five-week losing streak

Gold rebound pauses after snapping five-week losing streak

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Gold futures were essentially flat early on Monday after snapping a streak of five weekly losses, while the U.S. dollar continued its retreat and Treasury yields were only marginally higher.

Price action
  • Gold futures expiring in August


    were down slightly at $1,731 per ounce.

  • Silver futures expiring in September

    were slightly lower at $18.58 per ounce.

  • Palladium futures expiring in September

    were off $17, or 0.9%, at $2,001 per ounce, while platinum futures expiring in October

    were slightly higher at $868.90 per ounce.

  • Copper futures expiring in September

    were up 2 cents, or 0.6%, at $3.369 per pound.

What analysts are saying

Risk sentiment appeared mixed Monday morning, after Asian equity markets traded mostly lower, while U.S. stock futures pointed toward a higher open, and European markets traded mostly in the green.

Marc Chandler, chief market strategist at Bannockburn Global Forex, said gold prices were “consolidating” after rallying nearly $60 in two days.

S&P 500 futures

were up 0.5%, while the Euro STOXX 600 was up 0.3%. Over the past few months, gold and silver prices have shown a high correlation with “risky” assets like stocks. Meanwhile, gold has typically weakened while the dollar strengthened, and fallen while Treasury yields — which move inversely to prices — have risen.

The ICE U.S. Dollar Index
a measure of the greenback’s strength against a basket of its main rivals, was down 0.4% at 106.3.

Gold had tumbled to its weakest level in roughly 16 months, while silver had traded at its lowest level in two years, before precious metals prices rebounded last week.

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