Gold futures inched higher in Asia trading hours on Tuesday, gaining along with other metals as the dollar slipped back.
Gold for December delivery GCZ2 +0.33% GCZ2 +0.33% GCZ2 +0.33% rose $1.00 to trade at $1,738.70 an ounce.
The gains came as the ICE dollar index DXY -0.28% , which measures the greenback against a basket of six currencies, traded at 79.703 in Asia hours on Tuesday, from 79.711 in late North American trading on Monday.
Weakness in the dollar tends to aid dollar-denominated commodities such as gold because it makes them cheaper for holders of other currencies.
Gold futures fell GCZ2 +0.34% $22.10 an ounce on Monday to extend last week’s 1.2% drop.
As “U.S. currency and inflation expectations have stabilized, gold has given back some of its gains,” said Julian Jessop, head of commodities research at Capital Economics.
Gold will likely need a new catalyst to notch another run of strong gains, Jessop believes, naming a renewed escalation of the crisis in the euro-zone as a top contender for such a trigger.
Around the metals complex, December silver futures SIZ2 +0.63% rose 10 cents to $32.84 an ounce, while December copper futures HGZ2 +0.54% climbed 2 cents to $3.72 per pound.
January platinum futures PLF3 +0.95% were up $12.90 to $1645.60 an ounce while December palladium futures PAZ2 +1.00% rose $4.30 an ounce to $636.90.
Marketwatch
