Gold futures climbed on Wednesday, signaling its longest winning streak in almost three months as prices increased for a fourth consecutive day.
Price action
- Gold futures for December delivery gained $6, or 0.3%, to $1,931 per ounce on Comex. This potential higher settlement would mark the first four-day win streak since June 1, according to FactSet data.
- Silver futures for September delivery rose by 44 cents, or 1.9%, reaching $23.89 per ounce.
- Platinum futures for October delivery gained $7.10, or 0.8%, totaling $932 per ounce, while palladium futures for September delivery rose by $28.70, or 2.3%, to $1,293.50 per ounce.
- Copper futures for September delivery gained 3 cents, or 0.8%, reaching $3.77 per pound.
Market drivers
Following pressure from rising Treasury yields and a stronger U.S. dollar, gold prices are finally showing signs of life. FactSet data indicates that the yellow metal is on track for its first weekly gain in five.
However, some analysts caution that this recovery may not last unless there is a fundamental shift in the metal's outlook. The expectation of higher interest rates from the Federal Reserve has weighed heavily on gold, as investors seek alternative safe-haven assets like bonds and the dollar.
Carlo Alberto De Casa, an external market analyst at Kinesis Money, commented on the current state of the market: "This recovery attempt is a positive signal for the metal as it shows that buyers are returning to be active but we cannot yet consider the current movement to be a proper inversion. What is missing is a major catalyst with the strength to trigger a rise big enough to offset the decline of the last few weeks."
The ICE U.S. Dollar Index (DXY), which measures the strength of the greenback against other major currencies, rose by 0.3% to 103.90. Simultaneously, the yield on the 10-year Treasury note was down by 5.5 basis points at 4.270%. It is important to note that bond yields move inversely to prices.
