By Myra P. Saefong and Rachel Koning Beals
Gold futures tiptoed higher in subdued action Tuesday, notching their best settlement in almost a week as some a pull back in U.S. stocks helped to support haven demand.
Gold has generally maintained its uptrend, but has been tracking stocks recently. Equities were trading mostly lower Tuesday by the time gold prices settled.
August gold GCQ6, +0.24% rose $3, or 0.2%, to settle $1,332.30 an ounce—the highest settlement since last Wednesday. Prices of gold rose 0.1% on Monday, after falling some 2% last week amid stock-market gains and Bank of England inaction on interest rates. Still, over the previous six weeks, gold had settled higher weekly for a cumulative gain of nearly 12%.
“Gold flatlining so far this week proves again that geopolitics [don’t] move bullion prices, not like financial worries can,” said Adrian Ash, head of research at BullionVault.
Meanwhile, “silver seems to be losing some of its sheen for China’s day-traders after early July’s surge, but the big event this week remains Thursday’s [European Central Bank] decision and news conference, he said. “That could signal a new step in the global push to inflation our way past 2016’s troubles.”
September silver SIU6, -0.50% fell 6.8 cents, or 0.3%, to $20.01 an ounce. Silver also slipped Monday but prices are still up about 7.3% month to date, outpacing gold’s 0.9% rise for the month so far.
The ICE U.S. Dollar index DXY, +0.56% was up 0.6% Tuesday, but gold bucked its typical inverse relationship with the greenback. The dollar index reversed early-Tuesday losses seen on downbeat German data.
For now, “gold is waiting for the next round of easing from Japan and then the EU,” said Keith Springer, president of Sacramento, Calif.-based Springer Financial Advisors. “Low world-wide rates will keep U.S. rates at bay.”