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Gold futures edged back early Thursday, giving up some of its gains after the precious metal scored another settlement at the highest since September 2011, but silver and platinum futures were staging a sharp advance.
Precious metals have mostly benefited from expectations for a lengthy period of government and central bank stimulus to support economies harmed by the COVID-19 pandemic, but some analysts say that July also has been a seasonally strong period for gold due to heightened physical demand and appetite from exchange-traded funds.
The World Gold Council said that global net inflows for gold-backed exchange-traded funds reached $39.5 billion, topping the previous annual inflow record of $23 billion from 2016, according to a report issued Tuesday.
Softness in the U.S. dollar, which commodities tend to be priced in also has provided some support to precious metals, some experts say. The ICE U.S. Dollar index DXY, -0.02% was up 0.1%, however, on Thursday, but the gauge of a half-dozen currencies has been down 0.8% so far this week, according to FactSet data.
“The most significant development [in the market] seems to concern the breakout in the precious metals given ongoing US dollar weakness at a time when yields also remain weak,” wrote Mark Newton, technical analyst at Newton Advisors, in a Thursday research report.
“This time in July should be a sweet-spot for metals strength, and overweighting silver and gold should be favored for additional upside in the weeks ahead,” he wrote.
August gold GCQ20, -0.22% was off $3.90, or 0.2%, at $1,816.80 an ounce, a day after the most-active contract rose 0.6% to settle at the highest since Sept. 14, 2011, according to FactSet data.
Meanwhile, September silver SIU20, +1.06% gained 16 cents, or 0.8%, at $19.320 an ounce, following its 2.5% surge on Wednesday to the highest level for a most-active contract since September 2019. For the week, silver futures have gained 5.8% so far.
Elsewhere on Comex, September copper HGU20, +1.50% was trading 4 cents, or 1.6%, higher at $2.869 a pound. October platinum PLV20, +0.17% inched up 0.2% to $886 an ounce, while September palladium PAU20, +2.32% jumped 2.1% to $1,979.80 an ounce, bringing its weekly gain thus far to 6.6%.
