Metals Stocks: Gold set for a weekly gain, despite rising Treasury yields, dollar

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Gold futures were little changed early Friday, on track to eke out a weekly gain as traders brushed off typically negative factors like rising Treasury yields and a stronger U.S. dollar.

Gold for June delivery GC00, +0.42% was off $1.80, or 0.1%, at $1,936 an ounce on Comex, leaving it on track for a 0.6% weekly rise. May silver SIK22, +0.18% was up 0.5 cents at $24.74 an ounce, headed for a 0.4% gain for the week.

“Gold is trading around the same level it was yesterday, the day before that, the day before that and so on. Despite the spike in volatility seen elsewhere this week as a result of the hawkish Fed shift, gold has been unmoved,” said Craig Erlam, senior market analyst at Oanda, in a note.

The 10-year Treasury yield TMUBMUSD10Y, 2.698% pushed toward 2.7% early Friday after trading Thursday at its highest since March 2019. Higher Treasury yields are seen as a negative for gold and other nonyielding assets.

The ICE U.S. Dollar Index DXY, +0.10%, a measure of the currency against a basket of six major rivals, was on track for a 1.2% weekly advance after trading at its highest since May 2020 earlier in the week. A stronger dollar can be a negative for commodities priced in the unit, making them more expensive to users of other currencies.

Analysts said gold’s role as an inflation hedge appears to be buoying the metal. The Russia-Ukraine war was also seen as a factor, given the metal’s status as a haven.

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“We continue to see consolidation in the yellow metal, with the daily ranges tightening rather than widening as you may have expected,” Erlam wrote. “There are multiple forces at play here but traders are seemingly clinging to their traditional inflation hedge and safe haven.”

In other metals trade, May copper HGK22, +0.26% rose 0.9% to $4.741 a pound. July platinum PLN22, +1.48% was up 0.4% at $961.70 an ounce and June palladium PAM22, +8.20% gained 1.5% to $2,256.50 an ounce.

This article was originally published by Marketwatch.com. Read the original article here.

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