Gold traded higher Tuesday, with prices extending their climb after bullion hit its loftiest level since January on the back of a weaker U.S. dollar and continued fretting about inflation and market valuations.
“Gold bulls continue to draw strength from a weaker greenback and inflation fears,” wrote Lukman Otunuga, senior research analyst at FXTM, in a Tuesday note.
“The precious metal has gained 5.7% this month and could extend gains as inflation concerns continue to grow,” he wrote.
was trading up $2.70, or 0.1%, to trade at $1,870.30 an ounce, after the precious metal surged 1.6%, pushing the most-active contract to its highest settlement since Jan. 7. The precious metal also closed above the long-term 200-day moving average for the first time since early in 2021. Analysts view moves above or below moving averages as a gauge of an asset’s bullish and bearish momentum.
Meanwhile, July silver
was trading 38 cents, or 1.3%, higher, after gold’s sister metal jumped 3.3% Monday, driving silver futures to the highest settlement since February.