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Metals Stocks: Gold prices settle at their lowest since September

Gold prices continued to decline on Monday after clinching a fourth consecutive weekly loss as the strong dollar continued to weigh on the yellow metal.

If gold settles at levels it was trading at early Monday, it would be the lowest end-of-day level for the yellow metal in nine months.

Price action

Gold futures
GC00,
-0.37%

for August delivery were off $10, or 0.6%, to $1,732 per ounce.

Silver futures
SI00,
-0.58%

for September delivery was 10 cents, or 0.5%, lower at $19.14 per ounce.

Platinum futures
PL00,
-2.87%

for October delivery were down $16, or 1.9%, to $866 per ounce.

Palladium futures
PA00,
+0.44%

for September delivery were down $27.60, or 1.3%, to $2,129 per ounce.

Copper futures
HG00,
-3.00%

for September delivery were off 7 cents, or 2.1%, to $3.45 per pound.

What analysts are saying

Most of the dollar’s weakness since it reached its 2022 peak north of $2,000 per ounce has been the result of the strengthening dollar, and rising Treasury yields, which have made the shiny metal less attractive to investors by comparison.

Treasury yields
TMUBMUSD10Y,
2.991%

have picked up over the past few days, after coming off their highs of the year reached in mid-June. Meanwhile, thanks largely to weakness in the euro
EURUSD,
-0.99%
,
the ICE U.S. Dollar Index
DXY,
+0.82%
,
a measure of the dollar’s strength against a basket of rival currencies, has reached a new 20-year high just shy of 108.

“The precious metal’s price action is very much driven by the dollar index, which is holding on to its strength,” said Naeem Aslam, chief market analyst at AvaTrade.

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