Metals Stocks: Gold touches fresh 3-month high as rally continues

by | Nov 16, 2022 | Stock Market

Gold prices touched a fresh three-month high on Wednesday as the U.S. dollar continued to soften, adding more fuel to the yellow metal’s latest rally. Price action
Gold prices for December delivery
GC00,
+0.08%

GCZ22,
+0.08%
advanced $5.80, or 0.3%, to $1,782.60 per ounce on Comex. It traded as high as $1,788.20, the highest intraday level for a most-active contract since Aug. 17, FactSet data show.

Silver prices for December delivery
SIZ22,
+0.01%

SI00,
+0.01%
climbed 15.7 cents, or 0.7%, to $21.675 an ounce.

Palladium prices for December
PAZ22,
-0.33%
delivery fell 0.2% to trade at $2,076.50 per ounce, while platinum prices for January delivery
PLF23,
-0.58%
fell 0.5% to $1,017.40 per ounce.

Copper prices for December
HGZ22,
-1.26%
delivery retreated by 4.4 cents, or 1.1%, to $3.7765 per pound.

What’s happening Gold prices have been “on fire” this past week as the U.S. dollar has weakened and geopolitical tensions have surged, helping to push the yellow metal higher.

“Gold prices are still on fire, and they are still moving higher and likely to challenge the resistance of $1,800. The main reason behind this continues to be the weakness in the dollar index and also ongoing geopolitical tensions,” said Naeem Aslam, chief market analyst at AvaTrade. The ICE U.S. Dollar Index
DXY,
-0.10%,
a gauge of the dollar’s strength against a basket of rivals, was off 0.2% at 106.22. Gold had seen some support in the wake of news that a missile crossed over the Ukrainian border and killed two people in Poland,” increasing demand for the ultimate safe haven asset that has endured through centuries of human conflict,” said Rupert Rowling, market analyst at Kinesis Money, in a market update. “While the initial prognosis points to the missile being accidentally fired by Ukrainian forces rather than by Russian ones, the incident highlights how easily the war in Ukraine could spill over and risk escalating the conflict to one involving NATO members,” he said. Polish said Wednesday that there is no indication that the missile was an intentional attack, according to The Associated Press.

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