Metals Stocks: Gold prices edge higher as traders track weaker dollar

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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 for June delivery on Comex GC.1, +0.26% GC00, +0.56% rose $9.80, or 0.6%, to $1,707.80 an ounce, while July silver SI00, +0.79% was up 13 cents, or 0.9%, at $15.81 an ounce.

“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.