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Gold and silver prices advanced on Monday, extending their gains from late last week as the U.S. dollar hits a two-week low and Treasury yields pull back, helping to bolster demand for precious metals ahead of Tuesday’s critical inflation update.
Price action
-
Gold futures
GCZ22,
+0.80%
for December delivery climbed $14.10, or 0.8%, to $1,742.80 per ounce on Comex. -
December silver
SIZ22,
+4.84%
climbed 68 cents, or 3.6%, to $19.44 per ounce. -
Palladium futures
PAZ22,
+3.46%
for December delivery climbed $27.40, or 1.3%, to $2,205 while platinum
PLV22,
+2.25%
for October delivery climbed $11.80, or 1.3%, to $888.50 per ounce. -
Copper futures
HGZ22,
+0.81%
due in December climbed 3 cents, or 0.8%, to $3.598 per pound.
What analysts say
Gold traded at its highest level in two weeks, while silver traded at its highest level in a month, with analysts attributing their moves to the weakness in the dollar, as well as lower Treasury yields.
Jim Wyckoff, senior analyst at Kitco, attributed the advance to the drop in the ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against a basket of rivals. It was off 0.8% to 108.09, its lowest level in two weeks.
“Gold and silver prices are posting good advances in early U.S. trading Monday, boosted by another sharp decline in the U.S. dollar index, which hit a two-week low overnight,” Wyckoff wrote.
