Gold prices traded higher for a second day on Tuesday as the precious metal recovered a little ground following its fifth straight week of losses.
Price action
-
Gold futures for August delivery
GCQ22,
-0.06%
were up $4, or 0.2%, to $1,714. -
Silver futures
SIU22,
-0.69%
for September delivery were down 6 cents, or 0.3%, to $18.78. -
September copper
HGU22,
-2.54%
fell 4 cents, or 1.3%, to $3.30 per pound. -
October platinum
PLV22,
+0.90%
fell $12.20, or 1.5%, to $868 per ounce, while palladium
PAU22,
+0.43%
for September delivery fell $9.90, or 0.5%, to $1,859 per ounce.
What analysts are saying
Commodities analysts at JPMorgan Chase & Co.
JPM,
attributed gold’s strength over the past two sessions to the slight pullback in the U.S. dollar.
During this period of intense volatility in Treasury yields, the typical negative correlation between gold and the dollar has intensified.
“Amid the US dollar’s continued broader push higher since the end of May, the 60-day rolling correlation between changes in spot gold prices and the DXY index has strengthened towards -0.56 compared to -0.35 in mid-June and a period of positive correlation as recently as March and April,” said Gregory Shearer, a commodities analyst at JP Morgan, in a note to JPMorgan’s clients.
The ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against a basket of rivals, was down 0.9% to 106.44 early Tuesday.
