Gold prices moved higher on Tuesday as uncertainty about the pace of economic recovery in the wake of growing new coronavirus cases prompted investors to seek the safe-haven asset.
The dollar’s retreat after a positive show, contributed as well for gold’s uptick.
Although the commodity saw some weak spells at times, growth concerns due to the virus impact, trade and geopolitical tensions, and the various massive stimulus programs announced by global central banks and governments continue to push gold prices higher.
The dollar index, which advanced to 97.80 early on in the session, dropped to 98.23 by late morning before recovering some lost ground. It was last seen at 97.37, down 0.16% from previous close.
Gold futures for August ended up $19.30 or about 1.1% at $1,800.50 an ounce, the highest settlement since September 2011.
Gold futures have gained about 12.8% in the April – June 2020 quarter.
Silver futures for September ended up $0.570 or 0.6% at $18.637 an ounce, while Copper futures for September settled at $2.7285 per pound, gaining 1.3% for the session. Silver futures and copper futures gained about 32% and 22%, respectively, in the second quarter.
In economic news, a report from the Conference Board showed a bigger than expected improvement in U.S. consumer confidence in the month of June. The report said the Board’s consumer confidence index jumped to 98.1 in June from a downwardly revised 85.9 in May. Economists had expected the consumer confidence index to climb to 90.0 from the 86.6 originally reported for the previous month.
A report released by MNI Indicators showed a continued contraction in Chicago-area business activity in the month of June. The report said its Chicago business barometer rose to 36.6 in June from 32.3 in May, but a reading below 50 still indicates a contraction in regional business activity. Economists had expected the index to jump to 45.0.