SerpApi.Org
Gold and silver futures rose sharply Tuesday in a round of dip-buying, enjoying a boost alongside equities on strength in technology shares as earnings season heats up.
Gold has tumbled 22% since the outbreak of fighting between the U.S. and Iran on February 28, yet its 12-month price increase of 21% at the start of trading Tuesday was still slightly better than the S&P 500.
"Today’s move looks more like dip-buying than a response to new headlines," ING Bank commodities strategist Ewa Manthey said in a note. "The geopolitical backdrop remains supportive for precious metals, but silver is outperforming because it is benefiting from both safe-haven demand and stronger sentiment across industrial metals as copper rallies."
Investors now await the Federal Reserve's interest rate decision and Chair Kevin Warsh's comments following the Fed's two-day policy meeting next week, with traders pricing in a 68% chance of a rate hike in September, according to the CME FedWatch Tool.
"The psychologically significant $4,000 mark appears to be holding firm on the gold market... However, interest rate concerns in the U.S. are likely to put the brakes on a stronger recovery," Commerzbank analysts said in a note.
Front-month Comex gold (XAUUSD:CUR) for July delivery closed up 1.5% to $4,071.10/oz, and front-month Comex July silver (XAGUSD:CUR) surged 3.6% to $58.835/oz, the highest settlement value for both precious metals since July 10.
ETFs: (GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (DUST), (RING), (BAR), (OUNZ), (SGDM), (SGDJ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
