It hasn’t been a good day for commodities with gold, silver, copper and oil all falling sharply. Copper has been hit the hardest, followed by silver. The metals have been weighed down in part because of the stronger U.S. dollar, which has risen to its highest level since March 21 against the Japanese yen. The U.S. currency last week hit new highs on the year versus the major commodity currencies: the Canadian, Australian and New Zealand dollars.
Gold and silver have risen for the third straight day and both precious metals look set to close the week higher. Over the past nine weeks, gold has risen on eight occasions. Silver meanwhile has risen in each of the past nine weeks.
Gold slipped on Tuesday on a stronger dollar and as investors booked profits after the yellow metal hit a near three-month high in the previous session, amid safe-haven demand on the back of rising global political uncertainty. The dollar index, which measures the greenback against a basket of currencies, was up 0.7% at 100.610.
Gold and silver have started the new week how they ended the last one: higher. Last week saw silver extend its bullish run for the sixth straight week while gold recorded its fifth weekly gain in six. Correspondingly, it was the dollar’s fifth losing week in six as the Dollar Index fell below 100. U.S. stock markets ended the week higher, however, with the S&P 500 index extending its bullish run for the fifth consecutive week.
It has been a rather volatile day across the financial markets as investment funds reposition their portfolios ahead of the new month. Equities and the dollar fell further, precious metals bounced and oil gushed higher. In forex, the safe-haven yen strengthened as did the euro while the pound recovered from its early weakness to turn decisively higher against the dollar.