By Myra P. Saefong and Joseph Adinolfi
Gold prices softened for a second day on Tuesday, with the most-active futures contract for the yellow metal marking another settlement at the lowest level in more than a week, as the U.S. dollar held onto the bulk of its recent gains.
December gold futures /zigman2/quotes/210039517/delayed GCZ22 -0.20% fell $8.40, or 0.5%, to settle at $1,789.70 per ounce on Comex after losing 1% on Monday. Prices based on the most-active contract ended at their lowest since Aug. 5, FactSet data show.
September silver /zigman2/quotes/222214092/delayed SIU22 -0.58% declined by 19 cents, or 0.9%, to $20.085 per ounce.
Palladium prices /zigman2/quotes/227794063/delayed PAU22 -0.76% for September delivery retreated $9.30, or 0.4%, to $2,149 per ounce, while October platinum prices /zigman2/quotes/228424980/delayed PLV22 -0.18% shed $2.30, or nearly 0.3%, to $931.30 per ounce.
Copper for /zigman2/quotes/210058648/delayed HGU22 -0.02% September delivery added a penny, or 0.2%, to settle at $3.6245 per pound. Prices fell Monday amid a broad-based selloff in industrial metals and oil.
What analysts are saying
Gold prices have softened this week, with the yellow metal holding below the key $1,800 per ounce level for a second session, leaving it on track to snap its longest streak of weekly gains since December.
“The fact that gold isn’t shedding too much of its recent gains could be a positive sign over the medium term, although it would have to overcome what has become a strong barrier of resistance this past week,” said Craig Erlam, senior market strategist at OANDA.
The ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY +0.40% , a gauge of the dollar’s strength against a basket of rivals, was down 0.1%, but still up nearly 0.8% for the week so far, while the 10-year Treasury yield /zigman2/quotes/210369575/delayed TY00 -0.10% gained four basis points to 2.827%.
U.S. interest-rate hike expectations by the Federal Reserve for September have swung in favor of a “less aggressive” 50 basis point hike, “but I’m not convinced that will cap the dollar, particularly if the greenback garners additional safe-haven interest”, said Peter Grant, vice president and the senior metals strategist at Zaner Metals LLC and Tornado Precious Metals Solutions, in a late Monday newsletter.
“This is where any disbelief that we are already in recession could get the Fed in trouble,” he said. “We’ll get to see the minutes of the July [Federal Reserve] meeting on Wednesday.”
Among economic data released Tuesday, construction on new U.S. homes fell a seasonally adjusted 9.6% in July to 1.45 million, the lowest level since early 2021. U.S. industrial production rose 0.6% in July, with the gain coming in above Wall Street expectations for a 0.3% increase, according to a survey by The Wall Street Journal.
Hear from Ray Dalio at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed .