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Gold adds to gains from last week as Treasury yields pull back

October 3, 2022

NEW YORK (Oct 3) Gold prices traded modestly higher on Monday as the yellow metal looked to extend gains from last week, even after the strong dollar helped drive gold to its sixth straight monthly loss in September.

Price action

  • Gold for December delivery GCZ22, 0.26% advanced $2, or 0.1%, to $1,673 per ounce on Comex.
  • Silver futures SIZ22, 4.71% expiring in December climbed 40 cents, or 2.1%, to $19.46 per ounce, on track for its biggest daily advance in roughly three weeks.
  • December palladium PAZ22, +1.57% climbed $9.80, or 0.4%, to $2,192 per ounce, while January platinum PLF23, 2.51% climbed $4.20, or 0.5%, to $863 per ounce.
  • December copper HGZ22, -0.63% fell 4 cents, or 1.3%, to $3.363 per pound.

What’s happening

Precious metals strategists attributed gold’s gains on Monday to a pullback in Treasury yields.

The 10-year yield TMUBMUSD10Y, 3.671% was off 9 basis points to 3.707%.

Analysts at Sevens Report Research said in a Monday research note that “the fundamental backdrop is getting less bearish” for gold “as Treasury yields and the dollar may be approaching a peak.”

However: “If we do not see a peak in yields and the buck,” investors should expect the precious metal to tumble to new lows.

As for silver, Rupert Rowling, an analyst at Kinesis Money, said silver has been rising due to expectations that it will be in “big demand” as the transition toward clean energy continues.

The ICE U.S. Dollar Index DXY, 0.06%, a gauge of the dollar’s value against a basket of six rivals, climbed 0.2% to 112.29.


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