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Metals Stocks: Gold extends move above $1,300 an ounce as dollar pulls back

Gold futures on Tuesday extend a recent rise above $1,300 to a second day as weakness in the U.S. dollar, providing some runway higher for the precious metal. Read More...
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Workers work on a site of the Tongon gold mine

Gold futures on Tuesday were extending a rise above $1,300 an ounce as weakness in the U.S. dollar provided some runway higher for the precious metal.

Gold for June delivery GCM9, +0.58%  on Comex rose $3.70, or 0.3%, to reach $1,305.60 an ounce, after closing up 0.5% on Monday, marking its first finish above $1,300 and highest settlement for a most-active contract since March 27, according to FactSet data.

Meanwhile, May silver SIK9, +0.55%  rose 2 cents, or 0.1%, to $15.235 an ounce, after a solid gain in the session before.

Moves for metals come as U.S. dollar, as measured by the ICE U.S. Dollar Index DXY, -0.18% was down 0.1% at 96.93, representing a potential second day of weakness for greenback. A weaker buck can boost the appeal for bullion, which is priced in the currency.

Commodity investors were reacting to late Monday news from the office of the U.S. Trade Representative, which threatened to impose tariffs on European goods in response to subsidies given to European aircraft manufacturer Airbus SE AIR, -1.82%

“A modest slowdown of the greenback in conjunction with some uncertainty in the stock market were enough to push bullion prices up, confirming firm investor appetite for gold,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades.

U.S. equity markets were set to edge lower, with the Dow Jones Industrial Average DJIA, -0.32% and the S&P 500 index SPX, +0.10% likely to see a relatively subdued moves at the start of Tuesday trade.

Elsewhere in Comex, May copper HGK9, +0.78% added 3 cents, or 0.2%, to $2.953 a pound. July platinum PLN9, -0.87%  lost $7.50, or 0.8%, to $905.40 an ounce and June palladium PAM9, +0.88%  was tacking on $15.40, or 1.1%, to $1,368.50 an ounce.

Among the exchange-traded funds, SPDR Gold Shares GLD, +0.43%  rose 0.4% ion premarket trade, while the VanEck Vectors Gold Miners ETF GDX, +1.16%  climbed 0.5%.

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