By Myra P. Saefong and Joseph Adinolfi
Gold futures settled at their highest price in about three weeks on Tuesday, while silver ended at its highest level since June, as precious metals added to their strong gains from the prior session.
Analysts attributed the advance in precious metals prices over the past week to a pullback in Treasury yields and the U.S. dollar.
Gold futures /zigman2/quotes/210039517/delayed GCZ22 +0.26% /zigman2/quotes/210034565/delayed GC00 +0.11% for December delivery advanced $28.50, or 1.7%, to settle at $1,730.50 per ounce on Comex, the highest finish for a most-active contract since Sept. 12, FactSet data show..
Silver futures /zigman2/quotes/210319410/delayed SIZ22 -0.90% /zigman2/quotes/210315219/delayed SI00 -0.28% for December delivery climbed 51 cents, or 2.5%, to $21.099 per ounce after surging 8% on Monday, the biggest advance for a most-active contract since February 2021. Silver futures settled at their strongest level for a most-active contract since late June.
December palladium futures /zigman2/quotes/229904593/delayed PAZ22 -0.73% climbed $98, or 4.4%, to $2,330.20 per ounce, while January platinum /zigman2/quotes/230581331/delayed PLF23 -1.20% climbed $33.60, or 3.7%, to $933.70 per ounce.
December copper /zigman2/quotes/210059544/delayed HGZ22 +0.74% climbed 8 cents, or nearly 2.4%, to $3.49 per pound.
“Gold has kicked off the final quarter of 2022 on a positive note, thanks to a softer dollar and subdued Treasury yields,” said Lukman Otunuga, manager, market analysis at FXTM.
Market speculation around the Federal Reserve “adopting a less aggressive approach on rate hikes has also sweetened appetite for zero-yielding gold,” he said in market commentary.
“While prices may push higher over the next few days, the metal’s outlook will be influenced by the U.S. jobs report on Friday,” said Otunuga.
Data released Tuesday showed that job openings in the U.S. fell sharply to 10.1 million in August and touched the lowest level since last fall.
Jim Wyckoff, a senior analyst at Kitco, said gold and silver bulls appear to have gained “some momentum” with prices rebounding after falling for six straight months through the end of September.
“Trading so far this week sees a weaker U.S. dollar, higher crude oil prices, falling U.S. Treasury yields and safe-haven demand — all fueling the runup in the two precious metals’ prices,” he said.