Gold futures ended slightly higher Tuesday, a day after finishing at its lowest since late February as a flight to quality left the yellow metal behind.
Gold for June delivery
rose $8.10, or 0.4%, to settle at $1,904.10 an ounce on Comex after closing Monday at its lowest since Feb. 25, following a 2.1% decline last week.
However, July silver
the most active contract, shed 14 cents, or 0.6%, to finish at $23.572 an ounce. May silver
which expired at the end of Tuesday trade, closed 12.6 cents, or 0.5%, lower to end at $23.544 an ounce.
Global equities have been volatile as investors react to fears of a potential lockdown of Beijing as Chinese authorities responded to a rise in COVID-19 cases. Gold, often viewed as a haven during periods of market volatility, has been receding from a near-term high above $2,000, hit back in early March as Treasury yields have risen, drawing some demand away from gold.
But Daniel Briesemann, analyst at Commerzbank, argued that the Monday slump for gold was likely the result of forced selling as well as a stronger U.S. dollar.
“During such market phases in the past, gold would often come under pressure because gold would be sold to offset losses elsewhere,” he said, in a note. “Yesterday, for example, saw considerable pressure on stock markets for some of the time. Gold has at least regained the $1,900 per troy ounce mark this morning.”
Briesemann said gold is likely to be well supported and will reassert its status as a haven and an inflation hedge.
In other metals, May copper
lost nearly a penny, or 0.2%, to settle at $4.4410 a pound. July platinum
rose $7.10, or 0.8%, to end at $912.10 an ounce, while June palladium
bounced $56.40, or 2,7%, to finish at $2,178.50 an ounce, after concerns over China sent the metal down 10.7% in Monday’s session.