Gold Futures Inch Higher But Rally Loses Steam

Wall Street Journal

3 days ago

1524 GMT – Gold futures rise, though they are on track to end the week slightly lower. Futures are up 0.4% at $3,359.40 a troy ounce, but are 0.1% lower on week. Gold's impressive year-to-date rally seems to be increasingly running out of steam, Commerzbank CBK -0.67%decrease; red down pointing triangle analysts say in a note. Though the U.S. dollar weakened to its lowest level against the euro in four years at the beginning of July, the precious metal traded broadly sideways, analysts write. Sharp increases in the prices of silver, platinum and other precious metals over the same time period indicate traders see little further upside in gold and are looking for alternatives, Commerzbank says. After gold's price increase of nearly 27% year to date, mostly in the first few months of 2025, this is hardly surprising, analysts say. ([e-mail])
1044 GMT – Gold futures rise, though they remain stuck in narrow range as the market awaits fresh catalysts. Futures are up 0.4% at $3,358.30 a troy ounce, though they remain down 0.2% on week. The precious metal has been broadly rangebound in recent months, with technical trading indicators neutral and offering no clues as to the short-term direction, Trade Nation's David Morrison says in a note. A recovery in the U.S. dollar this month appears to be capping any potential gains for gold for now, Morrison writes. Gold could experience downside pressure if the dollar were to spike higher, a possibility due to large short positions on the currency, Morrison says. A stronger dollar challenges gold's safe-haven characteristics and makes dollar-denominated assets more expensive for international purchasers to buy. ([e-mail])