Gold extends bounce from 3-month low

Gold futures rose on Tuesday, widening a rebound from a three-month low as the U.S. dollar fell from a nearly two-decade high.

Gold for June delivery GC00,
+ 0.88%

+ 0.88%
rose $ 15, or 0.8%, to $ 1,829 an ounce on Comex, after rising 0.3% the previous session after trading below the $ 1,800 an ounce threshold. July silver rose 13.9 cents, or 0.6%, to $ 21.69 an ounce.

The dollar has been hitting gold for the past few weeks. ICE US Dollar DXY Index
it has reached its peak in about 20 years, as the Federal Reserve has embarked on an aggressive cycle of rising interest rates to try to control inflation. A stronger dollar is seen as a negative for commodities priced in the currency, making them more expensive for users of other currencies.

“A weaker dollar and a slight decline in Treasury yields were considered key factors that led to an upward movement. Regardless of recent gains, the precious metal is not yet out of the woods,” said Lukman Otunuga, an analyst. FXTM Senior Research Officer, in a note. “If the US economic data and the speeches of Fed officials raise the Fed’s expectations of a rise and push the dollar higher, gold could be in trouble.”

In the trade of other metals, July copper HGN22,
+ 1.57%
rose 1.7% to $ 4.263 a pound.

platinum July 22 PLN,
+ 2.08%
rose 2.2% to $ 945.70 an ounce, while the PAM22 June palladium,
+ 1.42%
rose 1.2% to $ 2,027 an ounce.

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