Gold is trading higher after breaking a string of 4 weekly declines in a row

Gold futures gained ground and found support on Monday after suffering a string of four straight weekly declines.

gold for June delivery GC00,

Soared $20.50, or 1.1%, to $1,862.60 an ounce on the Comex after rising 1.7% last week as it rebounded from a three-month low. July Silver SIN22,
rose 2.4% to $22.185 an ounce.

Gold found support last week as Treasury yields, which move inversely to price, continued their decline after the 10-year rate hit a 3 1/2 year high earlier this month. Rising yields can be negative for gold as they increase the opportunity cost of holding non-yielding assets. A weaker dollar also helped gold by making commodities rated in this unit cheaper for users of other currencies.

Gold benefited last week “from the combination of falling interest rates (both nominal and real) and a pullback in the recent unrelenting dollar rally,” analysts at Sevens Report Research wrote in a note Monday. “Looking ahead, gold remains in a countertrend pullback in an otherwise bullish market, but we will continue to monitor real interest rates and the dollar as key drivers. If they make new highs, gold will find it very difficult to sustain above $1,800 an ounce.

Trading other metals July copper HGN22,
rose 1.5% to $4.341 a pound.

July platinum 22 PLN,
rose 3.2% to $971.30 an ounce while palladium PAM22 in June
rose 3.7% to $2,010.50 an ounce. Gold is trading higher after breaking a string of 4 weekly declines in a row

Brian Lowry

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