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Gold prices finished with a modest loss on Monday, pressured by strength in U.S. Treasury yields, while silver futures extended their losses from last week, with prices settling at their lowest in about a month.
Price action
Gold futures
GCZ22,
-0.02%
for December delivery fell by 10 cents, or 0.01%, to settle at $1,749.70 per ounce on Comex after tapping an intraday high of $1,757.90.
December silver
SIZ22,
-0.77%
SI00,
-0.89%
lost 15 cents, or 0.8%, to $18.67 per ounce, ending at the lowest price for a most-active contract since July 27, FactSet data show.
Palladium
PAZ22,
-0.13%
for December delivery was off $2.40, or 0.1%, to $2,130.30 per ounce, while October platinum
PLV22,
-0.11%
declined by $1, or 0.1%, to $854.30 per ounce.
Copper
HGZ22,
-2.56%
for December delivery fell 9 cents, or 2.3%, to $3.6105 per pound.
What analysts say
Gold futures fell by a dime Monday, with modest weakness in the U.S. dollar helping to limit losses for dollar-denominated prices of the precious metal.
“For gold to stabilize near-term we will need to see both the dollar and yields level out and stop rising because otherwise, those two headwinds would almost certainly send gold prices down towards critical support at $1,680,” said analysts in Monday’s newsletter from Sevens Report Research.
The dollar, as measured by the ICE U.S. Dollar index
DXY,
-0.00%
was down 0.1%, but traded 2.6% higher month to date. Ten-year Treasury yields
TMUBMUSD10Y,
3.107%
climbed 7 basis points to 3.108% in Monday dealings.
Read: Gold is down 15% from its record high but here’s why it may still be key to a diversified portfolio
Edward Moya, senior market strategist at OANDA, warned that gold “may be vulnerable here as Treasury yields could gain further momentum next week if the labor market remains healthy.”
Monthly data on U.S. employment will be released on Friday. See the U.S. economic calendar.
A lower U.S. August nonfarm payrolls number, with a headline number of around of around 125,000, would be bullish for gold prices and bearish for the U.S. dollar index and bond yields, said Chintan Karnani, director of research at Insignia Consultants. That number would suggest that interest-rate hikes are cooling the U.S. economy, paving the way for a 50 basis point rate hike in September and a pause in hikes in November, he said.
Hear from Ray Dalio at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed.
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