Gold futures were up modestly Tuesday, with support attributed in part to a weaker tone for the U.S. dollar as investors also weigh efforts to reopen economies that were closed in the effort to contain the COVID-19 pandemic.
“Gold continues to float around the $1,700 level. The range is closing in gradually but there’s little to suggest we’re on the verge of an explosive breakout,” said Craig Erlam, senior market analyst at Oanda, in a note.
The ICE U.S. Dollar Index DXY, -0.44%, a measure of the currency against a basket of six major rivals, fell 0.3%. A weaker dollar can be a boost for commodities priced in the unit, making them less expensive to users of other currencies.
The dollar, however, has been largely rangebound, Erlam noted. A drop in the dollar below its April lows could give gold a push higher, Erlam said.