Gold prices traded higher Gold prices traded higher as the US Dollar weakened against its major counterparts and Treasury bond yields fell following disappointing US consumer confidence data. This bolstered the relative appeal of anti-fiat and non-interest-bearing assets. Near-term follow-through may prove lacking however as traders await Fed policy cues from Friday’s release of third-quarter US GDP data before showing directional commitment.
December gold GCZ6, +0.06% rose $9.90, or 0.8%, to settle at $1,273.60 an ounce. Prices settled at their highest level since Oct. 3, according to FactSet data. That followed Monday’s close at the lowest settlement since Oct. 18. Prices are still down about 3.1% so far this month.
December silver SIZ6, -0.22% gained 17.6 cents, or 1%, to $17.78 an ounce.
The precious metals added to earlier gains as the dollar traded off the session’s high. The ICE U.S. Dollar Index DXY, -0.36% edge down by under 0.1% to 98.67, but had earlier touched its highest levels since January. The dollar and gold often move inversely because a firmer buck leaves dollar-priced commodities less desirable to purchasers using another currency.
The S&P 500 SPX, -0.32% has failed to make new highs as the financial market may be concerned about the impact of an appreciating dollar on future earnings, said Fawad Razaqzada, technical analyst at Forex.com. U.S. equities traded mostly lower Tuesday.Click here for reuse options!