Gold futures rose Tuesday, extending a bounce from a three-month low as the U.S. dollar backed off from a nearly two-decade high.
Gold for June delivery GC00, +0.78% GCM22, +0.78% rose $15, or 0.8%, to $1,829 an ounce on Comex, after rising 0.3% in the previous session after trading below the $1,800-an-ounce threshold. July silver was up 13.9 cents, or 0.6%, at $21.69 an ounce.
The dollar has been calling the tune for gold in recent weeks. The ICE U.S. Dollar Index DXY, -0.73% has pushed to its highest in around 20 years as the Federal Reserve has kicked off an aggressive interest rate-hiking cycle in a bid to get inflation under control. A stronger dollar is seen as a negative for commodities priced in the currency, making them more expensive to users of other currencies.
“A weaker dollar and slight retreat in Treasury yields were seen as key factors triggering a move to the upside. Regardless of recent gains, the precious metal is certainly not out of the woods yet,” said Lukman Otunuga, senior research analyst at FXTM, in a note. “Should the pending U.S. economic data and speeches from Fed officials boost Fed hike expectations and propel the dollar higher, gold could be in trouble.”
In other metals trade, July copper HGN22, +1.84% rose 1.7% to $4.263 a pound.
July platinum PLN22, +1.86% rose 2.2% to $945.70 an ounce, while June palladium PAM22, +0.87% was up 1.2% at $2,027 an ounce.