FU: Gold futures hit 6-day high on broad U.S. dollar weakness
Futures Pros – Gold futures advanced for the third consecutive day on Tuesday, climbing to a 6-day high, as the U.S. dollar weakened against its major counterparts in thin year-end trade, boosting the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD 1,390.15 a troy ounce during European morning trade, jumping 0.44%.
It earlier rose to USD 1,392.45 a troy ounce, the highest price since December 20.
With markets in London closed in observance of Boxing Day and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
Gold prices were boosted as the U.S. dollar came under broad selling pressure after U.S. Treasury yields retreated on Monday following a U.S. government USD 35 billion auction of two-year securities.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.43% during European morning trade.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, silver for March delivery gained 0.39% to trade at USD 29.42 a troy ounce, while copper for March delivery edged up 0.03% to trade at USD 4.289 a troy ounce during European morning trade.
Earlier in the day, copper for March delivery rose to a fresh record high of USD 4.307 a pound amid increased demand.
