Gold futures edged lower Tuesday with investors looking to the dollar and Treasury yields for cues as bulls attempted to reignite upside momentum for the yellow metal.
Gold for April delivery
on Comex fell $1.30, or 0.1%, to $1,318 an ounce, while March silver
declined 4.1 cents, or 0.3%, to $15.845 an ounce.
Gold was in danger of logging a three-day losing streak after proving unable Monday to overcome a headwind from a stronger U.S. dollar. Gold can often take cues from moves in the dollar, with a stronger currency making commodities priced in the unit more expensive to users of other currencies. The ICE U.S. Dollar Index
a measure of the greenback against a basket of six major rivals, was up 0.1% Tuesday.
Higher bond yields
can also be a weight for gold and other commodities that offer no yield.
Market bulls, however, said they remain upbeat on prospects for the yellow metal, which has rallied 2.9% so far in 2019.
Peter Hug, director of global trading for Kitco.com, said in a Tuesday post that near-term consolidation would be healthy for the market, with China’s Lunar New Year holiday set to decrease demand this week.
“Unless there is a surge for the dollar, we see a $1,305 – $1,325 range this week,” he said, with technical resistance at $1,325 the next target for bulls to overcome. A move through that level could open the way for a test of $1,337.
In other metals trade, March palladium
was up $8, or 0.6%, at $1,338.40 an ounce, while April platinum
is up $1.40, or 0.6%, at $824.20 an ounce. March copper
was up 1.6 cents, or 0.6%, at $2.8105 a pound.