Gold Futures Bounce Back from Losses Amid Optimism in Upward Trend

Strategic Insights -

Gold futures gained marginally on Thursday as participants remained bullish on the metal despite recent gains, but a stronger greenback limited the gains. Thinly traded nearby April gold rose 70 cents to $1,159.70, while most-active June gold settled at $1,160.30 an ounce on the Comex division of the New York Mercantile Exchange. The ICE Futures U.S. Dollar Index was up 0.345 point, or 0.4%, at 80.535 points, which often pressures dollar-denominated gold by making it more expensive for buyers using other currencies.

Key Takeaways:

  • Gold futures bounced back from losses on Thursday, with most-active June gold rising 70 cents to $1,160.30 an ounce on the Comex division of the New York Mercantile Exchange.
  • A stronger greenback, which was up 0.345 point, or 0.4%, at 80.535 points, limited the gains in gold, as a stronger dollar often pressures dollar-denominated gold.
  • The underlying bullish sentiment still exists in the market, with industrial buyers purchasing gold in hopes of getting into the market before prices go even higher, says a trader who cannot be named.
  • Weaker-than-expected U.S. jobless numbers weighed on gold as an inflation hedge, but the metal was able to recover on safe-haven buying amid worries about Greek debt.
  • Silver futures settled marginally higher, with Comex May silver gaining 1.8 cents to $18.433.
  • Platinum group metals futures declined slightly on some profit-taking, with Nymex July platinum falling $7.90 to $1,726.30 an ounce and June palladium dropping $2.10 to $545.90 an ounce.

Statistics:

  • Most-active June gold rose $0.70 to $1,160.30 an ounce on Thursday.
  • The ICE Futures U.S. Dollar Index was up 0.345 point, or 0.4%, at 80.535 points.
  • Comex May silver gained 1.8 cents, or 0.1%, to settle at $18.433.
  • Nymex July platinum fell $7.90, or 0.5%, to settle at $1,726.30 an ounce.
  • Weaker-than-expected U.S. jobless numbers showed initial claims for jobless benefits rising by 24,000 to 484,000 in the week ended April 10.

Sources:

  • Dow Jones Commodities News via Comtex, "Gold futures bounce from losses; silver futures settle higher"
  • OptionSellers.com, Michael Gross, broker and futures analyst
  • Country Hedging, Sterling Smith, analyst
  • Labor Department, weekly report on initial claims for jobless benefits
  • ICE Futures, U.S. Dollar Index
  • Dow Jones Newswires, Matt Whittaker, 212-416-2139, matt.whittaker@dowjones.com