Commodity Blog

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Gold Trying to Rebound From 2018 Lows

May 22, 2018 at 16:24 by Andrew Moran

Gold futures are looking to rebound from their worst levels in 2018 as they continue to stall just under the crucial $1,300 mark. The yellow metal might benefit from a lower US dollar, but Treasury yields are holding steady at multi-year highs. Investors are now looking ahead to the end of the week to determine if the Memorial Day long weekend will give precious metals a boost.

June gold futures rose $1.10, or 0.09%, to $1,292.00 per ounce at 16:03 GMT on Tuesday. On Monday, gold prices settled at their lowest intraday levels since December and recorded their second consecutive weekly drop of 2% last week. Year-to-date, gold is still up just under 1%.

The white metal is rallying as July silver futures jumped $0.085, or 0.51%, to $16.60 an ounce. The sister commodity to gold also endured a weekly decline of 1.5% last week.

The US dollar is trading 0.21% lower to 93.52 after the greenback touched a one-year high on Monday. A weaker buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

Gold’s gains are likely being capped by further rallies in Treasury notes. The 10-year Treasury note yield is still flirting with its highest level in seven years at 3.074%, while the 30-year Treasury note yield has topped its four-year high of 3.21%.

The lack of news coming out of China-US trade negotiations and the paucity of geopolitical tensions have not spurred interest in safe-haven assets among investors.

Other metal commodities are seeing an ocean of green. July copper futures advanced $0.036, or 1.16%, to $3.134 per pound. July platinum futures surged $9.80, or 1.09%, to $909.00 an ounce. July palladium futures increased $1.10, or 0.11%, to $991.50 per ounce.

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