Gold edges lower as dollar finds strength, while silver adds to gain

Gold edged lower Tuesday, appearing to take a cue from a stronger U.S. dollar, while silver built on the previous session’s gain after settling at a 13-month high.

Gold for August delivery on Comex GCQ19, -0.08% declined $2.10, or 0.1%, to $1,424.80 an ounce, while September silver SIU19, +0.48% rose 6.4 cents, or 0.4%, to $16.475 an ounce.

The ICE U.S. Dollar Index DXY, +0.42% , a measure of the currency against a basket of six major rivals, rose 0.3% to trade near 97.567 after trading at around a one-month high following a deal between President Donald Trump and congressional leaders announced a deal late Monday on a debt and budget agreement that would avert the possibility of a government shutdown or federal default.

A stronger dollar can be a negative for commodities priced in the U.S. unit, making them more expensive to users of other currencies.

The removal of budget-related risk also dented haven-related demand for gold, as did a continued stream of well-received second-quarter results from U.S. companies as earnings season continues, said Edward Moya, senior market analyst at Oanda, in a note.

Silver, meanwhile,

In other metals trade, October platinum PLV19, +0.65% rose $3.10, or 0.4%, to $855.80 an ounce, while September palladium PAU19, -0.74% fell $5.20, or 0.3%, to $1,524 an ounce. September copper HGU19, -0.88% was off 2.1 cents, or 0.8%, to $2.701 a pound.


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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya