Metals Stocks: Gold prices kick off second half of 2023 in the red as U.S. dollar strengthens

Gold prices are starting the second half of 2023 in the red on Monday after booking their biggest monthly loss since February in June as higher Treasury yields and a stronger U.S. dollar weigh on the yellow metal

Price action
Gold for August delivery GC00, +0.05% GCQ23, +0.05% is down $8.90, or 0.5%, to $1,920 an ounce on Comex.
September silver SI00, +0.37% SIU23, +0.37% shed 3 cents, or 0.2%, to $22.99 per ounce.
September palladium PAU23, +1.68% rose by $3, or 0.2%, to $1,225 per ounce, while October platinum PLV23, +0.54% shed $1, or 0.1%,
Copper for September delivery HGU23, +0.94% gained 3 cents, or 0.8%, to $3.79 per pound.
Market drivers
“Gold and silver prices are lower in early U.S. trading Monday. The metals are seeing pressure from a higher U.S. dollar index and a rise in U.S. Treasury yields to start a U.S. holiday-shortened trading week,” said Jim Wyckoff, senior analyst at Kitco.com.

Gold prices have been falling since logging the second-highest close for a most-active futures contract ever on May 4, when it finished at $2,055.70 an ounce. Precious-metals market analysts have blamed expectations that the Federal Reserve could delivery two more interest-rate hikes later this year, which has helped to push up Treasury yields and the value of the U.S. dollar.

The highest settlement level on record for gold arrived on Aug. 6, 2020, when prices finished at $2,069.40 per ounce, according to Dow Jones Market Data. Analysts had thought the yellow metal might eclipse that high during its bull run that began last fall and peaked in May. Whether or not it will resume remains to be seen.

The ICE U.S. Dollar Index DXY, +0.05% gained 0.2%, to 103.09, while the yield on the 10-year Treasury note TMUBMUSD10Y, 3.815% gained 5.3 basis points to 3.863%.