Gold price tries for back-to-back wins, leaving behind 5-week lows hit this week

New York (June 22)  Gold gained in back-to-back sessions Thursday, clawing up from the five-week lows struck earlier this week, as the metal’s safe-haven appeal drew at least short-term demand.

“We’re seeing risk aversion in the markets once again ... with U.S. [stock] futures currently slightly in the red, gold adding to recent gains and the yen edging higher,” said Craig Erlam, senior market analyst with Oanda.

August gold GCQ7, +0.51%  added $5.80, or 0.5%, to $1,251.60 an ounce. The contract finished at $1,243.50 on Tuesday, its lowest since May 16, according to FactSet data. July silver SIN7, +0.95%  , which has both investing and industrial uses, split once again with gold. It gained 15 cents, or 0.9%, to $16.53 an ounce on Thursday.

The closely watched dollar index DXY, +0.02% slipped a narrow 0.02% to 97.54, lessening the currency-related headwind for commodities priced in the currency, including gold. A stronger dollar tends to make assets pegged to the buck more expensive to buyers using other monetary units. U.S. equities, meanwhile, signaled a weaker open as the major indexes churned near record highs but were hit by plunging oil prices.

Gold came under pressure earlier in the week, and that downbeat tone continues to cloud the market, as recent comments from Federal Reserve officials raised expectations for further increases in interest rates this year. Higher rates dull the demand for gold in favor of investments that do offer a yield.

Source: MarketWatch