Gold and Silver Futures Rebound on Safe Haven Demand

Gold and silver futures rebounded on Monday after recent losses as concerns surrounding the aborted mutiny in Russia over the weekend boosted demand for safe haven assets like gold and Treasury bonds.

The ICE U.S. Dollar Index, which measures the strength of the US dollar against a basket of its rivals, fell by 0.2% to 102.70, further supporting gold as a weaker US dollar makes the yellow metal more attractive to investors.

Here are the latest futures prices for precious metals:

  • Gold futures for August delivery (GC00, +0.28% GCQ23, +0.28%) increased by 0.3% or $5.90 to trade at $1,937 per ounce on Comex.
  • Silver futures for July delivery (SI00, +1.46% SIN23, +1.46%) rose by 2%, or 45 cents, to $22.82 per ounce.
  • Palladium futures for September (PAU23, +4.14%) rose by 2.2% or $28 to $1,314 per ounce.
  • Platinum futures for July delivery increased by 0.4% or $3.60 to $927 per ounce.
  • Copper futures for September delivery (HG00, -0.45%) gained 1 cent to $3.80 per pound.

Analysts noted that while the situation in Russia continues to capture investors’ attention, gold is moving in response to a weakening US dollar and reduced Treasury yields.

“Lower rates and a softer dollar have given gold a small lift. It traded near $1910 before the weekend, a three-month low, and is near $1930 late in the European morning,” explained Marc Chandler, chief market strategist at Bannockburn Global Forex in emailed commentary.

Despite gold and silver prices falling to their lowest levels in at least three months last week, following concerns surrounding more central-bank interest-rate hikes, analysts predict the recent turmoil in Russia will spur more demand among investors for precious metals.

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