Gold futures book third straight gain, hold near 6-year high
Gold prices on Tuesday finished regular trade modestly higher, marking a third straight gain a day after the precious metal extended its rally toward fresh six-year highs, amid escalating trade policy tensions between China and the U.S.
Gold for December delivery GCZ19, +1.54% on Comex rose $7.70, or 0.5%, to settle at $1,484.20, after ending 1.3% higher on Monday, extending its highest finish for a most-active contract close since 2013, according to Dow Jones market data.
September silver SIU19, +3.52% added 5.2 cents, or 0.3%, to end at $16.445 an ounce Tuesday, after booking an 0.8% gain in the prior session.
Bullion has been gaining traction on the back of worries that the U.S.-China tariff conflict won’t subside soon. An environment with debt yields also hovering at ultralow levels, and in many cases negative levels, also has supported buying of the yellow metal, which tends to rise during times of global economic uncertainty.
On Tuesday, equity markets recovered some ground, after seeing the biggest one-day fall of the year on Monday, after China’s central bank fixed its widely watched onshore currency at a level higher than expected, a move interpreted by some as a sign of some softening in trade tensions.
Still, commodity traders said gold and other precious metals could prosper against a backdrop of weakening global economic growth and continued anxieties on international trade with no immediate resolution in sight.
“For as long as risk appetite is dented by global growth fears, trade drama and Brexit uncertainty among many other geopolitical risk factors, gold bulls will remain in the driving seat,” he wrote.
Meanwhile, the 10-year benchmark Treasury note TMUBMUSD10Y, -3.81% was yielding 1.73% on Tuesday, little changed from its Monday levels, as prices and yields move inversely. The U.S. Dollar Index DXY, +0.08% was 0.1% higher at 97.63.
“With over $12 trillion of negative-yielding debt saturating the market, the relative attractiveness of gold continues to increase. As a result, gold-backed ETFs took in $2 billion in July, making June and July the highest back-to-back inflow months since June 2016,” wrote Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors, in a Tuesday note.
Exchange-traded fund SPDR Gold Shares GLD, +1.27% is up 14.6% so far in 2019 after climbing 0.9% Tuesday afternoon, while the miner-focused VanEck Vectors Gold Miners ETF GDX, +1.93%, which was trading little changed on the day, has returned 36% year to date.
Elsewhere on Comex, October platinum PLV19, +2.46% lost $4.70, or 0.5%, to $853.20 an ounce, after rising 0.8% on Monday. September palladiumPAU19, -1.07% picked up $20.70, or 1.5%, to $1,437 an ounce, more than recovering from a 1% decline on Monday.
Read: Palladium drops over 7% to log biggest loss in months
September copper HGU19, -1.97% rose 2 cents, or 0.6%, to $2.56 a pound, bouncing back from a 0.6% skid a day ago.