Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Gold Takes a Hit on Surging US Dollar, Rallying Equities

May 7, 2018 at 16:45 by Andrew Moran

Gold futures are taking a hit on the first trading day of the week. A surging US dollar and a rally equities market are contributing to the yellow metal’s losses on Monday, which comes as the precious metal plunged last week.

June gold futures slipped $0.50, or 0.04%, to $1,314.60 per ounce at 16:23 GMT on Monday. Gold prices have been trading just above two-month lows as traders pay attention to the crucial $1,300 threshold.

Silver is also failing to initiate rally to kick off the trading week. July silver futures dipped $0.01, or 0.07%, to $16.50 per pounce. The white metal suffered a weekly decline of 0.5% last week.

Year-to-date, gold is flat and silver is down nearly 4%.

Precious metals are slumping on Monday from a rising US dollar as the greenback jumped 0.15% to 92.73. The buck advanced 1.2% last week. A strengthening currency is bad for commodities that are priced in dollars because it makes it more expensive for foreign investors to purchase. The dollar is rallying on the market expecting the Federal Reserve to take a more aggressive approach to raising interest rates, despite the central bank being a bit more official and cautious in its remarks.

The stock market is still benefiting from a positive April jobs report, even though it was weaker than what analysts had expected. The US economy added 164,000 jobs last month, while the unemployment rate tipped under 4% for the first time since 2000.

Investors will now look ahead to important economic data, including a consumer credit rating reading, consumer prices, and inflation data.

Gold’s losses may have been capped on reports that a group of US negotiators did not reach a positive step in talks with their Chinese counterparts on trade. Officials are vowing that more talks occur in the coming months to prevent a trade war.

Other metal commodities were mixed on Monday. July copper futures slid $0.015, or 0.05%, to $3.085 per pound. July platinum futures advanced $5.30, or 0.58%, to $915.60 an ounce. July palladium futures soared $12.30, or 1.28%, to $969.60 per ounce.

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

Leave a Reply