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Metals Stocks: Gold bounces after tumbling to more than 2 year low


Gold and silver prices recovered some ground on Tuesday after back-to-back losses that left the yellow metal at its lowest level in two-and-a-half years.

Price action

Gold futures

for December delivery climbed $14, or 0.9%, to $1,647 per ounce on Comex.

Silver futures

for December delivery climbed 21 cents, or 1.1%, to $18.69 per ounce.

Palladium futures

for December delivery climbed $14.50, or 0.7%, to $2,063 per ounce.

Platinum futures

for October delivery climbed $8, or 0.9%, to $853 per ounce.

Copper futures

for December delivery climbed 5 cents, or 1.4%, to $3.34 per pound.

What’s happening

The strong U.S. dollar and rising Treasury yields have been weighing on gold prices all year thanks to expectations for more aggressive monetary policy tightening from the Federal Reserve and other global central banks. As a result gold-focused exchange-traded funds have endured a massive capital exodus, according to Commerzbank analysts.

“Gold appears to have lost its role as a safe haven to the USD, which thanks to the Fed rate hikes is promising considerable returns again, at least in nominal terms,” the team said in a note to clients on Tuesday.

“ETF investors are responding by jettisoning their gold holdings in grand style. The gold ETFs tracked by Bloomberg registered outflows of 7.7 tons on Friday, followed by another 8.5 tons yesterday.”

The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rivals, was off 0.5% at 113.64.

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