Metals Stocks: Gold prices retreat as U.S. dollar firms

Metals Stocks

Published: July 7, 2020 at 8:20 a.m. ET

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Gold futures retreated on Tuesday from the highest close in about a week, as the precious metal followed a bounce in the U.S. dollar which can weigh on commodities priced in the currency.
The U.S. dollar was up 0.2% on Tuesday, as measured by the ICE U.S. dollar index
a gauge of the buck against a half-dozen currencies.
August gold
was $7.50, or 0.4%, lower at $1,786 an ounce, after rising amodest 0.2% on Monday, enough to mark its highest finish since June 30.
Meanwhile, September silver
gave up 22 cents, or 1.2%, to reach $18.36 an ounce, relinquishing a large chunk of its 1.4% gain on Monday.

Precious metals silver and gold have benefited from safe haven appetite during the COVID-19 pandemic that has undermined global economic growth and elicited unprecedented stimulus from central banks and governments world-wide. That environment is seen keeping interest rates low and driving appetite for metals, bullish experts say.
“There is no doubt that traders are pouring money in gold [exchange-traded funds] for the gold demand has strengthened due to virus concerns,” wrote Naeem Aslam, chief market analyst at AvaTrade, in a Tuesday report.
“Falling interest rates around the globe, and the weaker dollar are keeping the rally alive for the gold price,” he wrote.
The 10-year Treasury note yield
has been kept in a range at around 0.70%, with such relatively low rates stoking appetite for bullion which doesn’t bear a coupon.



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