Gold prices finished Monday with a modest gain after settling at a two-week low in the previous session, with the dollar showing some weakness and U.S. stocks on the decline.
June gold GCM19, +0.04% on Comex added $1.60, or 0.1%, to settle at $1,277.30 an ounce. It ended Friday at $1,275.70, the lowest most-active contract finish since May 2, according to FactSet data. Gold futures logged a weekly loss of 0.9% last week on the back of a jump in U.S. consumer sentiment and a slightly firmer buck.
"Gold has once again been left exposed to long liquidation following the failed attempt to break above $1,300/oz last week," said Ole Hansen, head of commodity strategy with Saxo Bank, citing traders positioning data. "Hedge funds have, like most others, been struggling to work out the direction for gold with geopolitical tensions and a worsening trade war between China and the U.S. having so far failed to generate enough safe-haven demand to trigger a renewed push to the upside."
A narrow trading band continues to hamper significant moves for the haven metal, which typically might draw strong demand based on concern for a prolonged trade war that keeps risk markets, including stocks, in flux.
Relative dollar strength has held gold moves in check. The leading dollar index, the ICE U.S. Dollar Index DXY, -0.04% was down less than 0.1% Monday, after notching a weekly rise of 0.6% through Friday. U.S. benchmark stock indexes were broadly lower Monday as gold futures settled.
"Iran, China, Brexit and [the] usual worries are maintaining this $1275-$1300 area range for gold for now," said George Gero, managing director at RBC Wealth Management. "Cash is king for now and the dollar is [a] haven...," he said.
"Short term, gold is needed by many countries to shore up currency and investors who need it find access very expensive," said Gero in emailed commentary. "Weak stocks for now, [and] ]added worries both political and economic around the globe, will eventually add more gold to asset allocators."
Sino-American trade tensions continued to face apparent escalation, as U.S. technology companies have begun to comply with the White House's ban on China's Huawei Technologies Inc.
The gold-backed SPDR Gold Shares exchange-traded fund GLD, -0.23% tipped lower, looking to extend Friday's loss after trading 0.8% lower for last week.
Among other metals, July silver SIN19, +0.07% rose 5.7 cents, or 0.4%, to $14.445 an ounce. It logged a weekly loss of 2.7%. July copper HGN19, -0.22% fell 1.3 cents, or 0.5%, to $2.726 a pound. It lost 1.3% for last week.
Read: Dr. Copper's advice about the stock market is a waste of your pennies
July platinum PLN19, -0.16% eased $6.10, or 0.7%, to $814.20 an ounce, after suffering a weekly loss at over 5%. June palladium PAM19, +0.11% rose $25.20, or 1.9%, at $1,331 an ounce, after a weekly loss of 3.3%.
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