Gold gains ground as dollar pulls back
NEW YORK (Nov 29) Gold futures moved higher Tuesday, finding support as the U.S. dollar pulled back versus major rivals.
Price action
- Gold for December delivery GC00, 0.74% GCZ22, 0.74% rose $15.60, or 0.9%, to $1,755.90 an ounce on Comex.
- December silver SIZ22, 1.51% gained 38.5 cents, or 1.8%, to $21.30 an ounce.
- January platinum PLF23, 0.71% was up $11.80, or 1.2%, at $1,011.10 an ounce, while December palladium PAZ22, +0.70% advanced $16.40, or 0.9%, to $1,853.50 an ounce.
- December copper HGZ22, 0.96% rose 3.8 cents, or 1.1%, to $3.6495 a pound.
Market drivers
Gold lost ground Monday as protests across China over the country’s strict COVID curbs worried investors and helped lift the U.S. dollar. A stronger dollar can be a headwind for commodities priced in the unit, making them more expensive to users of other currencies.
The dollar was also boosted by remarks from Federal Reserve officials that indicated the central bank will continue to aggressively tighten monetary policy.
“Looking ahead, for gold the situation in China is less likely to have a material impact on the yellow metal as Fed policy expectations return to focus. With Fed officials taking a more hawkish tone, and fresh data on the labor market and inflation due out this week, there is a risk that gold rolls over if Fed ‘pause and pivot’ hopes fade again,” wrote analysts at Sevens Report Research, in a note.
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