Gold futures inched lower Tuesday, marking a second straight finish in the red as a rise in global stocks, perceived as risk assets, offset a slightly weaker dollar.
Gold for August delivery on Comex GCQ8, +0.25% shed 10 cents, or less than 0.1%, to settle at $1,225.50 an ounce, after also putting in a loss in the prior session. Prices had settled at $1,224 on Thursday, the lowest for a most-active contract in about a year. September silver SIU8, +0.26% meanwhile, added 9 cents, or 0.6%, to $15.52 an ounce.
The ICE U.S. Dollar Index DXY, -0.12% a measure of the U.S. currency against a basket of six major rivals, edged up down less than 0.1% lower at 94.59 Monday.
SPDR Gold Shares GLD, +0.26% the largest exchange-traded fund to invest directly in physical gold, was trading less than 0.1% higher Tuesday, while the iShares Silver Trust SLV, +0.76% gained some 0.8% on the day.
Both gold and silver have been in the doldrums in recent weeks and months as the dollar has gained traction. Silver is off 9.5% so far this year, while gold futures are down about 6.4% in 2018. Meanwhile, the dollar index has advanced roughly 2.7% in the first seven months of the year.
A stronger dollar can make commodities priced in the currency more expensive compared against those using other monetary units.
“The commodity has been in a downward trend since April, and we have yet to see any evidence that the bearish move has come to an end,” wrote David Madden, market analyst at CMC Markets UK. “The fact that gold dropped to a one-year low last week is still on traders’ minds,” he said.
Independent market analyst Stephen Todd, in a late-Monday research note said there was “still no sign of a trading bottom,” in gold and has recommended holding cash as a better alternative in the near term.
Delivering a further headwind for the yellow metal on Monday was a surge in the rates of government bonds, notably in the U.S., with the 10-year Treasury note TMUBMUSD10Y, -0.19% punching up to 2.963%, representing a six-week rate peak—a move that can undercut some appetite for precious metals that don’t offer a yield.
Other Comex traded metals saw moves higher. September palladium PAU8, +1.45% rose $6, or 0.7%, to settle at $908.60 an ounce, while October platinum PLV8, +0.80% advanced $4.60 an ounce, or about 0.6%, to close at $835.60 an ounce. September copper HGU8, -0.02% meanwhile, added 6.4 cents, or 2.3%, to $2.8105 a pound.
