Metals Stocks: Gold rises back near $1,800 as U.S. dollar softens to start July’s first full week

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Gold futures headed higher early Monday, supported in part by a weakening U.S. dollar, which was providing a runway for the commodity even as global stocks rallied.

The U.S. dollar was off 0.5%, as measured by the ICE U.S. Dollar Index DXY, -0.53%, a gauge of the buck against a half-dozen currencies. A weaker U.S. dollar can make assets priced in the currency more attractive to buyers using other monetary units.

Gains for greenback came amid a broad rally in equities that has been attributed to a surge in Chinese markets. Beijing’s state-run media published a front-page editorial encouraging investors to buy stocks to support domestic markets.

Still, investors are wrestling with the climbing tally of new COVID-19 cases in the U.S., concentrated in a number of hot-spot states including Arizona and Florida.

Against that backdrop, August gold GCQ20, +0.36% rose $4.30, or 0.2%, at $1,794.50 an ounce, after the most-active contract finished on Thursday around 0.5% higher for the holiday-abbreviated week, according to FactSet data.

“Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,807.50,” wrote Jim Wyckoff, senior analyst at Kitco.com.

“Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,754.00,” he wrote.

Read:Gold posts largest quarterly gain in 4 years; talk of record prices by year-end grows

Meanwhile, September silver SIU20, +2.14% rose 34 cents, or 1.8%, at $18.660 an ounce, after the metal put in a weekly gain of 1.6%.

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