Gold on Tuesday fell below the key $1,800-an-ounce level to its lowest prices so far this year, while silver futures trade at two-year lows, on back of a rise in the U.S. dollar to a new 22-year high against the euro.
- Gold prices for August GCQ22, -1.98% GC00, -1.98% delivery dropped $28.30, or 1.6%, to $1,773.20 an ounce after touching a low at $1,765.60. Prices for the most-active contract haven’t traded at levels that low since December, FactSet data show.
- Silver prices for September delivery SIU22, -2.65% traded at $19.16 per ounce, down 51.2 cents, or 2.6%, and trading at their lowest since July 2020.
- Palladium prices for September PAU22, -1.45% delivery were off $32.60, or 1.7%, to $1,905.50 per ounce.
- Platinum prices for October PLV22, -2.43% delivery dropped $25.10, or 2.9%, at $846.20 per ounce.
- Copper prices for September delivery HGU22, -5.24% were down 17.2 cents or 4.8%, to $3.432 per pound.
What analysts are saying
Naeem Aslam, chief market analyst at AvaTrade, blamed the dollar’s moves for driving price action in gold.
The greenback EURUSD, -1.64% traded at a new 22-year high against the euro on Tuesday, with one dollar buying roughly 1.03 euros.
Minutes from the Federal Reserve Open Market Committee’s June meeting, due out on Wednesday, as well as the monthly data on U.S. nonfarm payrolls, due Friday, are the “two most important events for the yellow metals, which are likely to bring significant volatility to the price,” said Aslam, in market commentary.
Meanwhile, Jim Wyckoff, senior analyst at Kitco.com, said technical indicators in recent trade for both gold and silver are now “fully bearish.”
“The metals are feeling the pressure of a stronger U.S. dollar index that notched a 20-year high overnight,” Wyckoff added. In Tuesday dealings, the ICE U.S. Dollar index DXY, +1.44% was up 1.5% at 106.71.