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Metals Stocks: Gold futures tally a 4th straight session gain as the dollar weakens, yields retreat

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Gold prices climbed on Wednesday to their highest level in nearly seven months, on track to tally a gain for a fourth session in a row, driven in part by a weaker U.S. dollar and lower Treasury yields.

Price action

Gold for February delivery
GC00,
+0.95%

 
GCG23,
+0.95%

advanced $13.30, or 0.7%, to $1,859.40 per ounce on Comex, with prices for the most-active contract poised for their highest finish since June 10, FactSet data show.

March silver
SI00,
+0.02%

 
SIH23,
+0.02%

shed 2.1 cents to $24.235 per ounce.

Platinum prices for April
PLJ23,
+0.18%

traded at $1,091 per ounce, down 0.2%, while palladium due in March
PAH23,
+5.56%

rose 2.4%, to $1,733 per ounce.

Copper prices for March
HGH23,
-0.94%

shed 3.8 cents, or 1%, to $3.7285 per pound.

Market drivers

Gold’s winning streak continued on Wednesday as the dollar and Treasury yields declined, while recession fears and hopes for more central-bank buying bolstered prices of the yellow metal.

“A macroeconomic landscape characterized by heightened recession risks and central banks concluding their tightening cycles bodes well for gold this year, with the next major barrier to watch on the upside being the $1,875 region,” said Marios Hadjikyriacos, senior investment analyst at XM.

The ICE U.S. Dollar Index
DXY,
-0.29%

was down 0.2% to 104.338, while Treasury yields were broadly lower, with the 10-year yield
TMUBMUSD10Y,
3.695%

off 9.1 basis points to 3.695%.

Gold declined for much of 2022 after peaking north of $2,000 per ounce in March. Precious metals traders are now watching to see whether it will return to those levels. Other precious metals, including silver and platinum, have also seen strong gains lately.

January “seasonality” tends to boost gold prices against the euro and U.S. dollar, Stephen Innes, managing partner at SPI Asset Management, told MarketWatch.

“” Gold always friends a friend  in uncertainty.” ”

— Stephen Innes, SPI Asset Management

“Sure, the reasons are always a bit opaque — why it’s out with the old, in with the gold every January?” he said. “Still, this year is about portfolio diversification, given the significant economic unknowns. Gold always friends a friend in uncertainty.”

The Fed: No Fed official expects an interest-rate cut to be appropriate this year, meeting minutes show

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