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Gold Prices Mixed On Softer Dollar

Published 05/31/2018, 12:09 AM
Gold prices were mixed on Thursday amid a softer U.S. dollar and rising bond yields.
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Investing.com – Gold prices were mixed on Thursday amid a softer U.S. dollar and rising bond yields.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were up $1.70, or 0.13%, to $1,303.20 a troy ounce by 11:55PM ET (03:55 GMT).

Gold prices have continued to oscillate around the $1,300 level as rising U.S. bond yields limited any gains from a plunge in the dollar. U.S. 10-year treasury yields rose 0.19% to 2.85% on Thursday.

Gold is sensitive to moves higher in U.S. rates, which lift the opportunity cost of holding gold as it pays no interest.

The U.S. dollar index, which tracks the greenback against a basket of six major currencies, dropped from its fresh high of 94.93 and was on course to trade below the 94 level. The index shed 0.05% to 94.01 at 11:55PM ET (03:55 GMT) and the slide appeared poised to continue.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.

In other precious metal trade, silver futures shed 0.05% to $16.535 a troy ounce, while platinum futures dropped 0.04% to $909.00 an ounce. Copper lost 0.07% to $3.07.

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