Gold Futures Settle Slightly Higher


Gold prices moved higher on Tuesday, extending gains to a fourth session as the dollar’s weakness and concerns about valuations in the stock markets resulted in increased demand for the safe-haven yellow metal.

Despite rising inflation, the Federal Reserve is unlikely to hike interest rates or any significantly taper its asset buying program, if recent comments from some Fed officials are any indication. Meanwhile, the market is awaiting the release of the minutes of the central bank’s latest monetary policy meeting.

Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report showed the U.S. economy had not yet reached the threshold to warrant scaling back the central bank’s massive bond purchases.

Separately, Dallas Fed President Robert Kaplan reiterated his view that he does not expect interest rates to rise until 2022.

The dollar index dropped to 89.69, losing nearly 0.6%.

Gold prices were a bit down earlier in the session, weighed down by an increase in bond yields, but recovered to close higher.

Gold futures for June ended up by $0.40 at $1,868.00 an ounce, a fresh four-month closing high.

Silver futures for July ended higher by $0.059 or about 0.2% at $28.333 an ounce, while Copper futures settled at $4.7255 per pound, gaining $0.0140 or 0.3%.

Data from the Commerce Department showed building permits in the U.S. rose by 0.3% to 1.76 million in April, from the previous month’s 1.755 million. Economists had expected building permits to rise to 1.77 million in April.

The material has been provided by InstaForex Company –


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