2023-06-26 16:50:38 ET
Gold prices Monday bounced above the previous session's more than three-month low , as the metal saw modest safe-haven demand following the Wagner Group's brief incursion into Russia that was quickly aborted over the weekend.
Analysts said gold also reacted to a weaker U.S. dollar and lower Treasury yields.
Front-month Comex gold ( XAUUSD:CUR ) for June delivery closed +0.2% to $1,923.70/oz, while front-month June silver ( XAGUSD:CUR ) settled +2.1% to $22.805/oz, snapping a four-session losing streak.
ETFs: ( NYSEARCA: GLD ), ( GDX ), ( GDXJ ), ( NYSEARCA: IAU ), ( NYSEARCA: NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )
But gold rose no more than 0.6% against the dollar following the events in Russia, suggesting it likely will extend its recent weakness in which the yellow metal faded 6% from April's highs.
Prior to the weekend, holdings in ETFs backed by the metal fell five straight sessions through Friday.
Gold prices are still trading under the 100-day moving average, which was breached earlier this month amid the rising likelihood of further monetary tightening by U.S. and European central banks.
Gold's "sluggish technicals" could see bullion sink to $1,875-$1,880 , Citigroup said, although "prices should end 2023 on a more bullish note above $2,000/oz... though it may be early to buy the dip."
More on gold and silver:
- Gold: Prepare For A Summer Rally
- Fundamentals For Gold And Silver Keep Improving
- Gold's Bullish Potential Amid Inflationary Adjustments
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Gold catches just a small bounce from Russia turmoil