Gold ends at highest since June, up a third straight session

Gold ends at highest since June, up a third straight session

Third consecutive gain marks longest run so far this year

Gold futures on Tuesday finished higher for a third straight session as haven support from geopolitical risks helped the metal shake off pressure from some gains in global stock markets and a steady dollar.

Bullion’s ascent comes on the first day of the Federal Reserve’s two-day policy meeting that is likely to signal a central bank that appears inclined to dial back a seemingly aggressive path of rate increases — a potentially bullish development for precious metal prices that don’t offer a yield.

Trading volume was mostly split among the two most-active gold contracts. Gold for February delivery GCG9, +0.31% on Comex climbed by $5.80, or 0.5%, to settle at $1,308.90 an ounce. April gold GCJ9, +0.30% ended at $1,315.20, up $5.90, or 0.5%. Both finished at their highest levels since June.

“Gold took some time but it finally broke away from $1,300 as a dovish Fed and global growth concerns continue to be the dominant narrative on Wall Street,” wrote Edward Moya, market analyst at Oanda, in a Tuesday research note.

The Fed has penciled in two quarter-point rate increases this year, down from an early estimate of three, although officials have stressed the moves aren’t set in stone. So far in 2019, after the December market turmoil, many Fed officials have emphasized that the central bank intends on being “patient” in its policy normalization plans. That could create a felicitous atmosphere for gold and other precious metals to clamber higher, commodity experts have said.

Meanwhile, March silver SIH9, +0.80% added 7.4 cents, or 0.5%, to $15.839 an ounce.

The U.S. dollar, which influences gold prices because the commodity tends to be priced in the currency, was holding steady. As measured by the ICE U.S. Dollar Index DXY, -0.06% a gauge of the buck against a half-dozen monetary units, the dollar was up less than 0.1% at 95.825 on Tuesday.

European stocks climbed, though U.S. benchmark stock indexes were mixed as gold futures settled.

“Rising geopolitical risk factors” have helped to boost appetite for gold, said Lukman Otunuga, research analyst at FXTM.

“With Brexit-related uncertainty, U.S.-China trade developments and global growth fears draining risk sentiment, gold is likely to continue glittering ahead of the FOMC statement,” he said. The statement on monetary policy is due Wednesday.

Other metals traded on Comex moved higher, with March copper HGH9, +0.20% up 1.7% at $2.725 a pound. April platinum PLJ9, +0.45% added 0.2% to $815.80 an ounce, while March palladium PAH9, +0.12% settled at $1,303.60 an ounce, up 1.1%, and ending close to the per-ounce price of gold.

Among exchange-traded funds, the SPDR Gold Shares GLD, +0.56% rose 0.4%, the iShares Silver Trust SLV, +0.61% added 0.5% and the VanEck Vectors Gold Miners ETF GDX, +2.42% climbed by 2.1%

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