Thursday, February 2, 2023
HomeMarketGold trades just below key $1,800 level as U.S. dollar softens

Gold trades just below key $1,800 level as U.S. dollar softens

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Gold futures were treading water just below the $1,800 per ounce level on Tuesday as precious metals advanced, helped by a modest pullback in the U.S. dollar.

Price action
  • Gold prices due in February
    GC00,
    +0.50%
     
    GCG23,
    +0.50%
    advanced $10.90, or 0.6%, to $1,785.20 per ounce on Comex.

  • Silver prices due in March
    SI00,
    +0.88%
     
    SIH23,
    +0.88%
    climbed 32 cents, or 1.4%, to $22.74 per ounce.

  • March palladium prices
    PAH23,
    +1.14%
    climbed $21.70, or 1.2%, to $1,883 per ounce, while platinum prices
    PLF23,
    -0.60%
    fell $4.90, or 0.5%, to $1,002.60 per ounce.

  • Copper prices for March
    HGH23,
    +0.49%
    climbed 2 cents, or 0.6%, to $3.817 per pound.

Market drivers

Gold has seemingly hit a wall after a torrid six-week rally that carried it from just above $1,620 per ounce to, above $1,800. Still, gold bulls have been emboldened and some are making predictions for the yellow metal to top out as high as $3,000 per ounce.

While both gold and industrial metals like copper have advanced in recent days, some are worried that rising Treasury yields and a rebound in the dollar, driven by expectations for more interest rises by the Federal Reserve, could help to reverse some of those gains.

“Gold and copper are both in near-term up-trends but a renewed rally in the dollar, rebounding rates, and worries about the health of the global economy are risks to the near-term outlook,” said analysts at Sevens Report Research.

For now, at least, the dollar
DXY,
-0.21%
is trending lower, with the ICE U.S. Dollar Index off 0.3% at 104.96, just above its lowest level since late June.

Credit: marketwatch.com

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