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Gold futures were inching higher Tuesday morning, a day after the precious metal closed at its loftiest level in about three weeks, supported by weakness in the U.S. dollar.
December gold
GCZ21,
was trading $1.10, or less than 0.1%, higher at $1,807.40 an ounce, following a 1.4% gain for bullion on Monday, which took the precious metal to its highest settlement since Aug. 5.
“Gold is off a bit but holding its strong advance yesterday staying afloat the $1800 level,” wrote Peter Cardillo, chief market economist at Spartan Capital Securities LLC, in a note.
Investors in gold have been attuned to trading in the dollar, which is virtually unchanged on Tuesday, as measured by the ICE U.S. Dollar Index
DXY,
after falling 0.6% on Monday, paving the way for gains in dollar-priced precious metals.
A weaker dollar can make assets priced in the currency, like gold, appear more attractive to overseas buyers.
Investors will also be watching the annual Jackson Hole central bankers monetary-policy symposium on Friday where Federal Reserve Chairman Jerome Powell may indicate that the central bank will slow monthly purchases of Treasurys and mortgage-backed securities that had helped to prop up financial markets during the worst of pandemic in the spring of 2020.
Elsewhere in metals, silver for September delivery
SIU21,
was picking up 8 cents, or 0.3%, to $23.74 an ounce, after surging 2.4% on Monday.
