COMEX gold rises above $3,400 per ounce, up 1.24% intraday.

COMEX gold rises above $3,400 per ounce, up 1.24% intraday.

COMEX gold futures surged above $3,400 per ounce on Monday, marking a significant intraday gain of 1.24%. The yellow metal's price reached $3,408.00 per ounce at 18:30 GMT, following a 1% weekly gain and a year-to-date increase of more than 29% [1]. This upward movement can be attributed to a combination of factors, including a weaker U.S. dollar and falling Treasury yields.

The U.S. Dollar Index (DXY) tumbled 0.65% to 97.84, down nearly 10% year-to-date, with a weaker greenback making dollar-denominated commodities, such as gold, more affordable for foreign investors [1]. Additionally, yields on U.S. Treasury securities decreased, with the benchmark ten-year yield falling 6.9 basis points to 4.362%, which lowered the opportunity cost of holding non-yielding bullion [1].

Silver, the sister commodity to gold, also experienced a notable rise, with September silver futures surging $0.866, or 2.25%, to $39.335 per ounce. The white metal climbed 2% last week and is outperforming gold this year, with a 34% year-to-date increase [1].

The metals market is closely monitoring trade developments, with the August 1 deadline for implementing tariffs looming. Commerce Secretary Howard Lutnick expressed confidence that a trade deal with the European Union would be reached before this deadline [1].

Analysts from ANZ noted that the buy-on-dip strategy remains in place, protecting downside risks for gold prices despite elevated inflation expectations and strong economic data [1]. The Federal Reserve's next policy meeting, scheduled for next week, will be closely watched, with expectations of lower rates this year, but a hold steady for the fifth consecutive meeting [1].

Copper, platinum, and palladium also experienced price increases, with August copper futures surging $0.0375, or 0.67%, to $5.642 per pound, August platinum futures advancing $36.80, or 2.53%, to $1,493.40 per ounce, and August palladium futures ticking up $3.50, or 0.27%, to $1,306.50 per ounce [1].

In other news, Citigroup analysts have predicted a notable rise in silver prices, projecting a surge of 13% in 2025, while forecasting a 25% drop in gold prices by 2026 [2]. The global silver market is anticipated to see demand outstripping supply for the fifth consecutive year, with demand projected at 1.20 billion ounces against a supply of 1.05 billion ounces [2].

References

[1] https://fxdailyreport.com/gold-surges-above-3400-on-weaker-us-dollar-lower-yields/
[2] https://seekingalpha.com/news/4468669-gold-edges-lower-on-stronger-dollar-easing-fears-of-powell-firing