Gold futures rose on Tuesday and support was partly attributed to a weaker tone for the US dollar, traders betting on a slow economic recovery, even as efforts were made to reopen trades. economies closed to contain the COVID-19 pandemic.
"It seems that a safe haven offer has returned to precious metals amid changing market ideas about the pace of economic recovery after the end of the Covid-19 pandemic," said Jim Wyckoff, senior analyst at Kitco. .com, in a daily comment.
"Traders and investors are assessing the ramifications of the markets for a very possible" second wave "of the Covid-19 pandemic as the world's major economies begin to reopen their trade and transportation infrastructure," he said. There is a growing feeling that the economic recoveries, which have been reflected in current market prices, although strong rebounds in many global stock indexes, will be "slower than expected".
"If market concepts continue to evolve toward a slower economic recovery, many markets (especially the stock markets) are likely to have to seriously push prices down," said Wyckoff. This would provide more support for the gold.
Gold for delivery in June at Comex
GCM20,
+ 0.76%
increased by $ 12.60, or 0,%, to $ 1,710.60 per ounce, while July Silver
SIN20,
+ 0.70%
it rose 11 cents, or 0.7%, to $ 15.79 per ounce.
The ICE index in US dollars
DXY
-0.44%,
A measure of the currency against a basket of six major rivals, lost 0.4%. A weaker dollar can boost products priced at one, making them cheaper for users of other currencies.
However, the dollar has been largely in the range, said Craig Erlam, senior market analyst at Oanda, in a note. A drop in the dollar below its April lows could give a boost to gold, he said.
Among other metals, copper from July
HGN20
-0.44%
lost 0.6% to $ 2,366 per pound. July
PLN20,
-0.56%
down 0.5% to $ 777.70 an ounce and palladium in June
PAM20,
+ 0.11%
nailed 0.5% to $ 1,836.70 per ounce