Gold traded near unchanged Tuesday, struggling for direction as stocks rose, potentially robbing the metal of haven appeal, while the U.S. dollar lost ground potentially providing a boost.
Gold for June delivery on Comex rose 60 cents, or less than 0.1%, to $1.724.40 an ounce, while May silver was off 4 cents, or 0.3%, at $15.17 an ounce.
Stocks were on track for a higher open Tuesday, with the Dow Jones Industrial Average looking to extend its winning streak to four session in a continued rebound off March 23 lows. The upbeat tone, which is seen robbing gold of haven-related appeal, has largely been attributed to moves by European countries and some U.S. states to begin easing coronavirus lockdowns.
“The precious metal had surged to seven-year highs only two weeks ago as fears of economic catastrophe from a prolonged period of shutdowns were heightened. But with the number of new virus cases appearing to have peaked in most of Europe and possibly in the United States as well, many jurisdictions are now moving towards removing some of the restrictions put in place to slow the spread of the virus, allowing some small businesses and factories to open their doors for the first time in weeks,” wrote analysts at XM, in a note.
The U.S. dollar, meanwhile, was weaker versus most major rivals. The ICE U.S. Dollar Index, a measure of the greenback against a basket of six major rivals, was down 0.5%. A weaker dollar can be a positive for commodities priced in the unit, making them cheaper to users of other currencies.