Metals Stocks: Gold prices settle at a nearly 2-week high

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Gold futures settled at their highest in nearly two weeks on Tuesday, logging a second straight finish above $1,300, as weakness in the U.S. dollar and concerns over global growth provided a runway higher for the precious metal.

Gold for June delivery GCM9, +0.45%  on Comex rose $6.40, or 0.5%, to settle at $1,308.30 an ounce, after closing up 0.5% on Monday. The settlement was the highest for a most-active contract since March 27, according to FactSet data.

Meanwhile, May silver SIK9, -0.17%  finished at $15.211 an ounce, down a half penny, following a 0.9% rise a day earlier.

Moves for metals came as U.S. dollar, as measured by the ICE U.S. Dollar Index DXY, -0.04% edged down to 97.005. It’s down 0.4% week to date. A weaker buck can boost the appeal for bullion, which is priced in the currency.

“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.

Global growth concerns also buoyed interest in gold, said Alfonso Esparza, senior market analyst at Oanda, after the International Monetary Fund cut its global economic forecast for the third time in six months.

Commodity investors were also 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, -1.86%

U.S. President Donald Trump’s “threats to put new tariffs on European goods seemed to dampen risk appetites, pressur[ing] the dollar and support[ing] gold overnight,” said analysts at Zaner Metals.

“The market also may have drawn support from reports indicating that ongoing strike action in South Africa is posing a more serious threat to gold production than previously thought,” they added in a Tuesday note. Sibanye-Stillwater Ltd.’s SBGL, -7.39% first quarter South African gold production is expected to be about 104,000 ounces, “which is only about 36% of year-ago levels and is roughly 90% of what was expected under strike conditions,” the analysts said.

U.S. equity markets were also moving lower, with the Dow Jones Industrial Average DJIA, -0.72% and the S&P 500 index SPX, -0.63% down Tuesday as gold futures settled.

Elsewhere in Comex, May copper HGK9, +0.07% added less than 0.1% to $2.934 a pound. July platinum PLN9, -1.73%  lost 1.5% to $899.30 an ounce and June palladium PAM9, +0.69% tacked on 0.7% to $1,362.60 an ounce.

Among the exchange-traded funds, SPDR Gold Shares GLD, +0.47%  rose 0.5%, while the VanEck Vectors Gold Miners ETF GDX, +0.42%  climbed 0.05%.

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