Gold looks set for second straight monthly loss
San Francisco (Mar 31) Gold futures on Tuesday edged a bit higher, but were still poised to log losses for a second month in a row, pressured by overall strength in the U.S. dollar.
Gold for June delivery GCM5, -0.16% which is the most-active futures contract, tacked on $2.70, or 0.2%, to $1,188 an ounce on Comex. For the month, prices were trading around 2% lower, though were still up around 0.4% for the quarter, based on the most-active contracts.
May silver SIK5, -0.20% added 6.1 cents, or 0.4%, to $16.735 an ounce. Prices were up 1.2% for the month, gaining 7.2% for the quarter.
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A day earlier, gold futures turned lower for a second session, hobbled by strength in the dollar and a rally in equities.
Prices for the metal on Tuesday likely found some support from weakness in U.S. equities, which headed lower as investors fretted over quarterly results. Data showed that the Chicago business barometer rose in February but remained in contraction territory, while consumer confidence surged in March.
Any gains for dollar-denominated gold were capped by a climb in the ICE U.S. dollar index DXY, +0.37%
Traders will spend much of this holiday-shortened week looking ahead to the March U.S. jobs data due Friday. See the Economic Calendar.
David Govett of Marex Spectron says he sees no real reason for the weak overall tone in precious metals to change soon.
“We will see a short week with the Easter holiday looming and apart from some short covering ahead of the holidays, I see no real reason for a rally,” he said. “The dollar will continue to remain the main driver for precious for the time being, so this is the one to watch.”
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Elsewhere in metals trading, May copper HGK5, -1.42% dropped a penny, or 0.3%, to $2.77 a pound, trading around 3.1% higher for the month.
The most-active July platinum contract PLN5, +2.19% added $23.20, or 2.1%, to $1,140.70 an ounce, trading nearly 4% lower for the month. June palladium PAM5, +0.78% tacked on $3.60, or 0.5%, at $732.60 an ounce, poised for a hefty 11% loss for the month.
Source: MarketWatch
