Gold closes: Gold and silver futures end higher on weaker dollar
2023-06-27 05:08:32 Source: Financial circles share to:
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According to news from the financial world on June 27, the miscarriage of the Russian mutiny boosted the demand for safe-haven products such as gold and U.S. Treasury bonds.
Gold futures for August delivery on the New York Mercantile Exchange rose $4.20 to settle at $1,933.80 an ounce, or 0.2%. Silver futures for July delivery rose 47 cents to $22.83 an ounce, or 2.1%.
Palladium futures for September delivery rose $23.70, or nearly 1.9%, to $1,302.70 an ounce, while platinum futures for July delivery rose $4.90, or 0.5%, to $928.60 an ounce. Copper futures for September delivery fell 1 cent, or 0.3%, to $3.80 a pound. Gold also benefited from a weaker dollar, with the ICE U.S. dollar index , which measures the greenback’s strength against a basket of currencies, down 0.2% to $102.70.
Chintan Karnani, an independent consultant who has tracked the gold market for the past 20 years, said there was safe-haven demand for gold following the developments in Russia.
There was a brief insurgency in Russia over the weekend, with the Wagner Group, a Russian paramilitary group, briefly leading an uprising against Russian President Vladimir Putin. Analysts said the situation in Russia continued to attract investors’ attention, but gold prices were also volatile on the back of a weaker dollar and lower U.S. Treasury yields.
“Lower interest rates and a weaker dollar gave gold a small boost,” Marc Chandler, chief market strategist at Bannockburn Global Forex, said in emailed comments, adding that gold was trading near $1,910 an ounce before the weekend, a three-month low point.
Gold and silver prices fell to their lowest levels in at least three months last week as fears of further central bank interest rate hikes weighed on the precious metal.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said in market commentary that the most important price level everyone is eyeing is $1,900, and the bulls want gold to remain above that level. If oil prices fail to hold that level, a drop towards the $1,850 mark is likely, he said.