Metals Stocks: Gold prices at lowest since March as dollar rises and U.S. debt-ceiling deal looks ‘doable’

by | May 18, 2023 | Stock Market

Gold futures settled at their lowest level since late March on Thursday, pressured by a stronger U.S. dollar and hopes for a deal to raise the U.S. debt ceiling by Congress. Price action
Gold futures for June delivery

declined by $25.10, or 1.3%, to settle at $1,959.80 per ounce on Comex, the lowest since March 27. Prices for the most-active contract were 3% lower week to date, poised for the largest weekly decline since the week ended Oct. 14, according to Dow Jones Market Data.

July silver

declined by 26 cents, or 1.1%, to $23.63 per ounce.

June palladium
shed $34.70, or 2.3%, to $1,450.20 per ounce, while July platinum
declined by $24.40, or nearly 2.3%, to $1,058.20 per ounce.

Copper for July
delivery fell by 6 cents, or 1.7%, to $3.69 per pound.

Market drivers Gold futures declined for a third straight session and were on track to notch their biggest weekly percentage drop since October as prices continued to pullback from their May 4 Comex settlement, which was the second highest on record.

Both gold and silver are seeing their momentum fade as the U.S. dollar continues to climb, extending a recent rebound that had carried the ICE U.S. Dollar Index
to its highest level in about two months. In Thursday dealings, the index was up 0.7% at 103.60. “That’s a significantly bearish outside-market development for the metals markets,” said Jim Wyckoff, senior analyst at “Rising U.S. Treasury yields this week are also a negative for the precious metals.” The yield on the 10-year Treasury
rose 6.5 basis points to 3.638%. Read Brett Arends’s ROI: Americans hate the stock market Meanwhile, Speaker of the House Kevin McCarthy said a debt-ceiling deal might be “doable” by Sunday. However, market experts cautioned that reaching a deal is merely the first step in what could be a fraught process. “Reaching an agreement is just one step — remember that it has to pass through Congress as well,” said Bipan Rai, head of currency strategy at CIBC Capital Markets.

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