Gold Prices Show Slight Consolidation as Dollar Weakens

Gold prices traded slightly on Tuesday as the U.S. dollar weakened and Treasury yields eased while traders awaited the release of U.S. inflation data due out Wednesday morning in New York.

Price Action

  • Gold futures for August delivery (GC00, +0.34% GCQ23, +0.34%) gained $4.70, or 0.2%, to $1,935 per ounce on Comex.
  • Silver futures for September delivery (SI00, -0.11% SIU23, -0.11%) shed 7 cents, or 0.3%, to $23.28 per ounce.
  • Palladium futures for September (PAU23, -1.19%) were off by $14, or 1.1%, to $1,222 per ounce, while platinum futures for October delivery (PLV23, -0.22%) fell by $3.60, or 0.4%, to $931 per ounce.
  • Copper futures for September delivery (HGU23, -0.18%) fell by 2 cents, or 0.4%, to $3.77 per pound.

Market Drivers

Gold and silver received a modest bump from a coterie of factors, including a weaker U.S. dollar and lower Treasury yields.

“Gold prices are higher and silver is slightly up in early U.S. trading Tuesday. Both precious metals are being supported by bullish daily outside market forces that see the U.S. dollar index weaker, crude oil prices firmer and U.S. Treasury yields down a bit,” said Jim Wyckoff, senior analyst at

The ICE U.S. Dollar Index (DXY, -0.05%), a closely watched gauge of the dollar’s strength, was modestly lower at 101.95. The yield on the 10-year Treasury note (TMUBMUSD10Y, 3.973%) was off by 3.5 basis points at 3.975%.

Traders are looking ahead to Wednesday’s U.S. June inflation report, which is expected to show headline inflation easing to 3.1% while core consumer prices in the U.S. grew by 5% last month, down slightly from May. If the numbers meet expectations, it would represent yet another sign that inflation has continued to ebb, albeit slowly, from its highest rate in more than four decades reached last summer.

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