Gold ended lower on Tuesday, overshadowed by a stronger U.S. dollar, while silver gained to tally another finish at its highest in more than a year.
Gold for August delivery on Comex GCQ19, -0.68%[1] declined $5.20, or 0.4%, to settle at $1,421.70 an ounce. Prices saw a brief pop higher in the immediate wake of some downbeat economic data, which showed a fall in June U.S. existing home sales[2].
September silver SIU19, +0.09%[3] however, rose 6.5 cents, or 0.4%, to finish at $16.476 an ounce, marking its seventh gain in eight sessions. That was the highest most-active contract settlement since June 15, 2018, according to FactSet data.
Read: Silver rallies to its highest in over a year, plays ‘catch up’ to gold’s gains[4]
“Firmness in silver prices will draw more and more people with less amount to invest,” said Chintan Karnani, chief market analyst at Insignia Consultants. “Silver is behaving like a low price safe haven and will attract more and more retail investment.”
The trend for silver will depend on next week’s Federal Open Market Committee policy decision and monthly U.S. nonfarm payrolls data, says Karnani. “If silver manages to trade over $16.715 after the FOMC and payrolls data, then $19.825 “will be reached by the end of August.”
For now, however, strength in the dollar put pressure on dollar-denominated prices of gold. The ICE U.S. Dollar Index ...