Commodity Blog

Gold futures are trading lower to start the trading week as reports suggest the US government shutdown may be on the verge of coming to an end. The news helped lift the US dollar, impacting dollar-denominated commodities on Monday.

February gold futures dipped $1.70, or 0.13%, to $1,331.40 per ounce at 16:20 GMT on Monday. The yellow metal shed 0.1% last week, snapping its five-week winning streak, but it is still settling at its best level since September.

Silver, the sister commodity to gold, is unable to garner any momentum to kick off the trading week. March silver futures slid $0.01, or 0.09%, to $17.02 an ounce. The white metal suffered a 1.3% weekly loss last week.

Year-to-date, gold prices have advanced more than 2%, while silver has been flat.

On Monday, senators told the press that there would be enough votes to pass a short-term spending measure that would reopen the US government. Senate Minority Leader Chuck Schumer confirmed that the Senate will debate immigration, including the Deferred Action for Childhood Arrivals (DACA) program, within the coming weeks in exchange for votes on a bill that would keep government open until February 8.

I expect @SenateMajLdr to fulfill his commitment to the Senate & abide by this agreement. If he does not honor our agreement, he will have breached the trust of not only the Democratic Senators but the members of his own party as well.

— Chuck Schumer (@SenSchumer) January 22, 2018

The news gave the US dollar a boost as the greenback jumped 0.10%, paring its early-morning losses. A stronger dollar is bad for metals like gold and silver because it makes it more expensive for foreign investors to purchase.

Despite the US government likely to reopen, analysts say that upcoming economic reports may overshadow everything else. Moreover, the three-day shutdown had very little effect on markets as traders dismissed the temporary closure as a non-event.

Next week, the Federal Reserve will hold its first Federal Open Market Committee (FOMC) policy meeting of 2018. Investors will pay close attention to the deliberations to garner any hints pertaining to what the US central bank will do with interest rates this year.

If you have any questions and comments on the commodities today, use the form below to reply.