Gold rises, on track for back-to-back gains following four-week losing streak
NEW YORK (August 21) Gold prices traded modestly higher on Monday as the yellow metal aimed for back-to-back gains after a lengthy losing streak.
Price action
- Gold futures for December delivery GC00, 0.55% GCZ23, 0.55% gained $3.40, or 0.2%, to $1,919 per ounce on Comex.
- Silver futures for September SI00, 2.63% SIU23, 2.65% gained 26 cents, or 1.2%, to $22.99 per ounce.
- October platinum PL00, -0.28% PLV23, -0.28% fell by $2.40, or 0.3%, to $912 per ounce, while palladium for September PA00, -0.87% PAU23, -0.87% delivery gained $3, or 0.5%, to $1,266 per ounce.
- September copper HGU23, 0.26% gained 1 cent, or 0.3%, to $3.72 per pound.
Market drivers
Investors absorbed a flurry of news to start the week, including smaller-than-expected interest-rate cut by China’s central bank.
The People’s Bank of China lowered its one-year loan prime rate by 10 basis points to 3.45%, while the five-year LPR was held at 4.2%. The U.S. dollar weakened following the announcement, while Treasury yields continued to march higher.
However, gold strengthened in spite of the rise in yields, a sign that the yellow metal is recouping some of its losses following a punishing four-week losing streak.
“Gold is trading little-changed after extending its losing streak for the fourth consecutive week,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.
The ICE U.S. Dollar Index DXY, a gauge of the buck’s strength against a basket of rivals, was off by 0.2% at 103.19, while the yield on the 10-year Treasury note BX:TMUBMUSD10Y increased by 5.5 basis points to 4.302%.
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