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Gold futures finished at their lowest in over a month on Monday, following their worst weekly pullback in nearly two months as U.S. dollar strength continued to sap the value of the yellow metal.
Price action
-
Gold futures for December delivery
GC00,
+0.33% GCZ23,
+0.33%
fell by $2.60, or 0.1%, to settle at $1,944 per ounce on Comex. That was the yellow metal’s lowest settlement since July 11 when it settled at $1,937.10, according to Dow Jones Market Data. -
Silver futures for September delivery
SI00,
+0.53% SIU23,
+0.53%
fell by 3 cents, or 0.2%, to end at $22.71 per ounce. -
Palladium futures for September delivery
PAU23,
+0.53%
declined by $36.20, or 2.8%, to end at $1,272.90 per ounce, while Platinum futures
PLV23,
+0.60%
was off $7.80, or 0.9%, to settle at $906.80 per ounce. -
Copper futures for September delivery
HGU23,
-0.16%
gained 1 cent, or 0.2%, ending at $3.73 per pound.
Market drivers
The latest gains for the U.S. dollar against its main rivals weighed on gold prices on Monday. The ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against a basket of rivals, was up by 0.3% at 103.19. That was the greenback’s highest level since July 6, according to FactSet data.
“Gold has been steadily declining since the middle of July and that bearish trend looks like it isn’t quite over as king dollar returns,” said Edward Moya, senior market analyst at OANDA.
“Gold traders might have been expecting to see some safe-haven flows come gold’s way but that didn’t happen as a weakening yuan triggered too much dollar strength,” Moya wrote in emailed commentary on Monday.
The Chinese yuan
USDCNY,
fell to its weakest level since November on Monday on mounting concerns about the country’s debt-laden property sector. The yuan traded at 7.28 per dollar, hovering at its weakest levels since early November, according to Dow Jones Market Data.
“Gold should be close to finding a floor, but first markets need to see some stability across China’s property market and the brewing contagion fears that the mainland economy will be dragged down,” Moya added.
Meanwhile, the Russian ruble
USDRUB,
plunged to its lowest level against the dollar in more than 16 months on Monday as blowback related to President Vladimir Putin’s invasion of Ukraine continued to weigh on the currency.
The Japanese yen
USDJPY,
also weakened to breach the key psychological 145 mark against the dollar on Monday, the first time since November 2022.
The focus this week will be on U.S. retail sales data due on Tuesday, followed by the minutes of the Federal Open Market Committee’s July meeting on Wednesday afternoon.
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