Gold Prices Expected to Climb as Dollar Rally Slows

Gold prices are expected to continue their upward trend for a third consecutive day on Tuesday, marking the longest winning streak for the precious metal in over a month. This comes as the rally in the U.S. dollar has slowed down and Treasury yields have decreased.

Price Action

• Gold futures for December delivery gained $7.90, or 0.4%, reaching $1,930 per ounce on Comex.
• Silver futures for September delivery gained 13 cents, or 0.6%, and reached $23.47 per ounce.
• Platinum futures for October delivery gained $10, or 1.1%, reaching $923 per ounce.
• Palladium futures for September delivery gained $23.40, or 1.9%, reaching $1,262 per ounce.
• Copper futures for September delivery gained 5 cents, or 1.3%, reaching $3.77 per pound.

Market Drivers

According to FactSet data, most-active gold futures are on track to rise for the first three-day winning streak since July 14. Analysts believe that gold prices are starting to stabilize ahead of Federal Reserve Chairman Jerome Powell's upcoming speech in Jackson Hole later this week. It is worth noting that even though Treasury yields have pulled back, they remain near their highest levels since 2007.

Ole Hansen, head of commodity strategy at Saxo Bank, stated in an email commentary that "Gold prices, in a relatively steep decline for the past month, are showing signs of stabilizing."

The yield on the 10-year Treasury note decreased by 2.5 basis points to 4.311% early Tuesday, following a settlement at 4.339% on Monday – the highest end-of-day level since November 6, 2007. Meanwhile, the ICE U.S. Dollar Index, which measures the strength of the dollar against a basket of other currencies, remained flat at 103.33.