Gold futures rose on Tuesday as the U.S. dollar retreated, giving dollar-pegged commodities a modest lift in early trade.
…“Gold needs to break and trade over $1273.30 [an ounce] for the rest of the day to zoom,” said Chintan Karnani, chief market analyst at Insignia Consultants, based in New Delhi.
“Political news from [the U.S.] will be the key market mover today. The fact that U.S. dollar has not zoomed after the release of Friday’s July nonfarm payrolls can result in more losses for the greenback in the short term,” Karnani said.
…Mark O’Byrne, research director at GoldCore Ltd., said Friday’s selling in gold after the jobs report may have been overdone and said recent moves for the metal reflects that view. It’s also reflective of an uptick in concerns about meaningfully adding to assets perceived as risky with concerns persisting over drama in President Donald Trump’s White House and worries about a potential hike to the U.S. debt ceiling to avoid a government shutdown.
“I think there’s a little bit of risk aversion in the market,” O’Byrne said.