Gold futures on Tuesday extended gains, putting the precious metal on pace for its longest win streak in more than four months as skittish investors continued to find appetite for gold following a rout for technology stocks on Monday.
Gold for August delivery on Comex GCM19, +0.02% gained $4.10, or 0.3%, to $1,331.90 an ounce, with a settlement at that level representing bullion’s highest for the most-active contract since Feb. 22, according to FactSet data. Futures for the yellow metal are on pace for a fifth straight advance, which would match a similar streak ended Jan. 31.
A day ago, the tech-studded Nasdaq Composite Index COMP, -1.61% retreated into correction territory, defined as a decline of at least 10% from a recent peak, amplifying moves into perceived havens like gold and government bonds and commensurately driving yields to fresh lows.
Heightened fear of growing risk factors swirling in markets — notably intensifying tariffs battles between the U.S. China and other international counterparts — and anticipation of weakening economic growth in the U.S. and elsewhere has underpinned bullion buying over the past several sessions.
Lower rates — with the 10-year Treasury note yield TMUBMUSD10Y, +2.50% at 2.10%, its lowest since September of 2017— have helped to support buying in precious metals, which don’t bear a yield.
Bullish gold investors say that bullion’s trade above $1,300 is an upbeat sign in the near term for the asset.
“From a technical point of view the recovery above the psychological threshold of $1,300 represents a first positive element, while the strength shown in the last 48 hours, with the rally up to $1,330 is confirming the bullish scenario,” wrote Carlo Alberto De Casa, chief analyst at broker ActivTrades.
“The next target could now be the resistance area of $1,350-$1,370, a level which has always stopped gold in the last 4 years,” he said.