Gold futures recorded modest gains to kick off the trading week even after rising US Treasury yields and an increasing US dollar. The yellow metal is on track for a seventh consecutive record-high close. Could gold prices touch $2,200?
April gold futures rose $4.60, or 0.21%, to $2,190.10 per ounce at 19:37 GMT on Monday on the COMEX division of the New York Mercantile Exchange. Gold prices have rocketed nearly 6% year-to-date.
Silver, the sister commodity to gold, is eyeing $25 to start the trading week. May silver futures tacked on $0.166, or 0.68%, to $24.715 per ounce. The white metal has climbed nearly 3% year-to-date.
Gold prices have extended their gains on expectations of the Federal Reserve pulling the trigger on a cut to interest rates later this year. Despite back-and-forth projections, the futures market anticipates the first rate cut at the June Federal Open Market Committee (FOMC) policy meeting.
Until then, gold is still pushing ahead amid a stronger buck and ballooning Treasury yields.
The US Dollar Index (DXY), a gauge of the greenback against a basket of currencies, rose 0.15% to 102.86, from an opening of 102.71. The index has pared some of its gains this year, as it is up only 1.5%.
A stronger buck is typically bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.
US Treasury yields were mostly up across the board, with the benchmark ten-year yield picking up a single basis point to 4.1%. The two-year yield jumped five basis points to 4.54%, while the 30-year bond was flat at 4.265%.
Gold is sensitive to movements in interest rates because it impacts the opportuniy cost of holding non-yielding bullion.
Investors will also pay attention to the February inflation report, with the consensus estimate suggesting a 3.1% print.
In other metal commodities, April copper futures jumped $0.0375, or 0.96%, to $3.929 per pound. April platinum futures swelled $28.10, or 3.07%, to $942.90 per ounce. April palladium futures surged $14.20, or 1.38%, to $1,039.50 an ounce.