Gold prices climbed on Tuesday, looking to put a halt to the yellow metal’s longest losing streak since early July, while silver prices were poised to break a six-session streak of losses.
for December delivery traded up $11.40, or 0.7%, at $1,759.80 per ounce on Comex, following six session losses in a row for the most-active contract.
for September delivery tacked on 9.7 cents, or 0.5%, to $18.975 per ounce. The move for silver also follows six straight sessions of declines, the longest since the 10-session fall ended May 2, FactSet data show.
for September delivery advanced 5.8 cents, or 1.6%, to $3.709 per pound.
What analysts are saying
Rising Treasury yields and the U.S. dollar’s strength were blamed for driving the weakness in precious metals prices over the past week, analysts said.
The precious metal has been smothered by a stronger dollar, rising Treasury yields and [Federal Reserve interest] rate hike jitters,” said Lukman Otunuga, manager, market analysis at FXTM, in a market update.
The potential for volatility in gold is “high this week,” thanks to Jackson Hole and Fed Chairman Jerome Powell’s remarks expected Friday, which could potentially act as a “fresh fundamental spark for gold,” said Otunuga.
Gold’s next key level of support stands at $1,724, said Otunuga. A fall below that level may mean that a selloff towards $1,700 is in the cards, while a move back above $1,752 “may open a path back towards $1,770 and $1,800,” he said.
Economic data released Tuesday showed U.S. businesses grew more slowly in August. The S&P U.S. services index dropped to 44.1 from 47.3, based on “flash” survey. It was the fifth decline in a row.
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