Gold prices extended their move lower on Tuesday as the U.S. dollar continued to climb and U.S. stocks also looked set to open higher.
Price action
- The price of gold futures GCQ22, -0.09% expiring in August was down $6 dollars, or 0.3%, to $1,834 per ounce.
- Silver futures SIN22, +0.50% expiring in July increased by 5 cents, or 0.3%, $21 per ounce.
- Platinum futures PLN22, +0.92% expiring in July climbed $8.90, or 0.9%, to $938 per ounce.
- Palladium futures PAU22, +3.02% expiring in September fell $67 dollars, or 3.7%, to $1,789 per ounce.
What analysts are saying
A team of analysts at Commerzbank attributed the mild weakness in gold prices Tuesday morning to data showing relatively weak demand in China and India.
“As the Swiss Federal Customs Administration has reported today, Switzerland exported a good 105 tons of gold in May. Less than half of this total went to China and India. At 10 tons, gold exports to China were the lowest in 14 months. This may well be related to the coronavirus lockdowns that had severely restricted public life,” the team wrote in a note to clients.”
They also furnished an explanation for the trading action in platinum and palladium.
“The general tenor is that the global platinum market is likely to remain oversupplied this year – albeit less significantly than last year – after a massive supply surplus in 2021. For palladium, on the other hand, market observers expect a supply deficit again this year, after the market was oversupplied in 2021 for the first time in a long time,” the Commerzbank team wrote.
Other markets
- The U.S. dollar climbed USDJPY, +0.71% against the Japanese yen, trading up 0.8% to 136 yen.
- The U.S. stock futures ESU22, +1.59% pointed to a higher open, with the S&P 500 futures up 1.4% at 3,727.
- The 10-year Treasury yield TMUBMUSD10Y, 3.281% was up 4.9 basis points at 3.28. Meanwhile, the yields on the 3-year TMUBMUSD03Y, 3.363% and 5-year bonds TMUBMUSD05Y, 3.368% stood at 3.37% and 3.38%, leaving the yield curve inverted from the belly on out.