By Myra P. Saefong and Rachel Koning Beals
Gold futures churned modestly higher Monday, reclaiming some ground lost last week as the metal came under technical selling pressure.
Weakness in the ICE U.S. dollar index DXY, -0.20% on Monday helped provide some support for dollar-denominated gold prices ahead of this week’s release of Federal Reserve interest-rate meeting minutes. Precious metals tend to draw buying in a low interest-rate climate, while prospects for rising rates make nonyielding gold and silver less attractive to investors who will chase higher yields elsewhere, including in stocks.
December gold GCZ6, +0.36% rose $3.20, or 0.2%, to $1,346.40 an ounce. On Friday, gold settled at $1,343.20 an ounce, down by just under 0.1% for the week with investors showing caution after prices failed to hold ground above the closely watched $1,350-an-ounce level. Gold has fallen four out of the five past weeks.
Silver for September delivery SIU6, +0.85% rose 13.7 cents, or 0.7%, to $19.84 an ounce, with futures off 0.6% last week.
The soft U.S. retail sales report released Friday, “plus the U.S. election could keep the Fed on hold until December at least—which can be seen a bearish for [the U.S. dollar] and supportive for gold,” said Colin Cieszynski, chief market strategist at CMC Markets.