Gold prices advanced Wednesday, as bulls tried for back-to-back gains after a sharp tumble to start the week. Haven precious metals were largely tracking weaker equities and global headlines emphasizing trade-war uncertainty, tensions in the Middle East and protests in Hong Kong.
Gold for June delivery on Comex GCM19, +0.52% was up $4.80, or 0.4%, at $1,331.20 an ounce. Futures prices are up roughly 1.9% month to date. The SPDR Gold Shares exchange-traded fund GLD, -0.12% was trading up 0.5% early Wednesday.
Gold expanded its recent advance on Tuesday though earlier weakness in that session came as Chinese authorities said they would back special-purpose bond issuances by local governments as part of an effort to bolster economic growth, according to The Wall Street Journal (paywall). With trade still in focus, U.S. stock futures pointed to renewed weakness Wednesday, lifting gold.
Save for Monday’s retreat, gold has gained almost uninterrupted for two weeks, inversely following a lower dollar DXY, -0.08% and declining Treasury yields. A stronger dollar can be a headwind for commodities priced in the unit as it makes them more expensive to users of other currencies, and vice versa.
Investors are focusing on inflation data, with the May consumer price index set for release at 8:30 a.m. Eastern.
Gold benefited from a sharp slide in U.S. Treasury yields last week as investors increasingly bet the Federal Reserve will move later this year to cut interest rates. Lower yields can be a positive for gold, reducing the opportunity cost of holding the metal.
Investors are watching protests in Hong Kong. Police on Wednesday fired tear gas and high-pressure water hoses at protesters who massed outside government headquarters in opposition to a proposed extradition bill that has sparked
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