Gold futures were slightly lower Thursday, consolidating after finishing at a nearly two-week high in the previous session as a pullback by the U.S. dollar gave bulls some breathing room.
Price action
-
Gold for December delivery
GC00,
-0.16% GCZ22,
-0.16%
was down $3.80, or 0.2%, at $1,665.40 an ounce on Comex. -
December silver
SIZ22,
-0.67%
fell 16.6 cents, or 0.9%, to $19.32 an ounce. -
January platinum
PLF23,
-0.94%
fell 1.1% to $952.20 an ounce, while December palladium
PAZ22,
+0.18%
ticked up 0.2% to $1,963.50 an ounce. -
December copper
HGZ22,
-1.14%
fell 1.1% to $3.507 an ounce.
Market drivers
Gold and other commodities found support Wednesday as the U.S. dollar, which has rallied in 2022, pulled back sharply versus major rivals, and as Treasury yields continued to pullback from their highest levels in more than a decade.
A stronger dollar can be a weight on commodities priced in the unit, making them more expensive to users of other currencies. Rising bond yields raise the opportunity cost of holding nonyielding assets.
The ICE U.S. Dollar Index
DXY,
a measure of the currency against a basket of six major rivals, bounced 0.4% higher on Thursday but remained down 1.7% for the week. The yield on the 10-year Treasury note
TMUBMUSD10Y,
rose around 4 basis points on Thursday.
“There are early signs that both the dollar and rates are beginning to roll over but until we have more definitive evidence that both are actually peaking, it will be too early to call a bottom in gold,” wrote analysts at Sevens Report Research, in a Thursday note.
Read More: Gold consolidates after finding support on dollar weakness