Gold and silver futures advanced on Monday, reversing some of their recent losses, as this weekend’s aborted mutiny in Russia helped boost demand for safety plays like gold and Treasury bonds.
The yellow metal also benefited from a weaker U.S. dollar, as the ICE U.S. Dollar Index, a gauge of the buck’s strength against a basket of rivals, was off by 0.2% at 102.70.
Price action
-
Gold futures for August delivery
GC00,
+0.43% GCQ23,
+0.43%
gained $5.90, or 0.3%, to trade at $1,937 per ounce on Comex. -
Silver futures for July delivery
SI00,
+2.38% SIN23,
+2.38%
rose by 45 cents, or 2%, to $22.82 per ounce. -
Palladium futures for September
PAU23,
+2.66%
rose by $28, or 2.2%, to $1,314 per ounce, while platinum futures for July delivery rose $3.60, or 0.4%, to $927 per ounce. -
Copper futures for September delivery
HG00,
-0.50%
gained 1 cent to $3.80 per pound.
Market drivers
While the situation in Russia continues to capture investors’ attention, gold is moving in response to a weaker U.S. dollar and lower Treasury yields, analysts said.
“Lower rates and a softer dollar have given gold a small lift. It traded near $1910 before the weekend, a three-month low, and is near $1930 late in the European morning,” said Marc Chandler, chief market strategist at Bannockburn Global Forex, in emailed commentary.
Gold and silver prices tumbled to their lowest levels in at least three months last week as fears of more central-bank interest-rate hikes weighed on precious metals prices.
However, analysts said over the weekend that turmoil in Russia following a mutiny by the leader of one of the country’s most powerful mercenary groups could spur more demand for precious.
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