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Gold futures were higher Tuesday, bucking headwinds from a rise in global stocks, as the U.S. dollar weakened, offering a pathway for bullion to gain altitude.
Gold prices have recovered slowly in October, caught between worries about rising inflation and concerns that central banks might lift interest rates in response, along with growing anxieties about waning global economic growth.
“The precious metal is likely to be influenced by conflicting forces this week as investors juggle growth concerns and inflation fears amid prospects of tighter monetary policy,” wrote Lukman Otunuga, senior research analyst at FXTM, in a note.
The dollar was down 0.4% as measured by the popular ICE U.S. Dollar Index
DXY,
which tracks the currency’s strength against six currencies. A weaker dollar makes dollar-priced assets comparatively less expensive for overseas buyers.
At last check, gold futures for December delivery
GCZ21,
GC00,
were trading $15.10, or 0.9%, higher at $1,780.90 an ounce, and testing the significant $1,800 level, following a 0.2% decline on Monday, its second straight decline.
“Should the dollar continue to weaken, gold has the potential to rechallenge $1800, a level just above the 100-day and 200-day Simple Moving Average,” wrote the FXTM analyst.
Meanwhile, December silver
SIZ21,
SI00,
was up 58 cents, or 2.5%, at $23.84 an ounce, after falling by 0.4% in the prior session.
