Gold prices on Tuesday retreated below a closely watched level at $1,200, as the precious metal extended a protracted downdraft into September that has mostly been driven by strength in the U.S. dollar.
December gold GCZ8, -0.60% declined $7.20, or 0.6%, at $1,199.50 an ounce, after the yellow metal settled at $1,206.70 an ounce on Friday.
In observance of Labor Day in the U.S., Comex-traded metals didn’t settle on Monday.
Gold declined 2.2% in August, representing its fifth consecutive monthly decline—the longest such streak in more than five years, according to FactSet data.
December silver SIZ8, -2.07% lost 29 cents, or 2%, at $14.170 an ounce. The contract for gold’s sister metal also was adding to a lengthy downturn, after registering a fall of about 7.1% for August.
A primary driver for the decline in both metals has been a steadily advancing U.S. dollar, which can make assets pegged to it more expensive to buyers using other currencies, undercutting the appeal of gold and silver.
The ICE U.S. Dollar index DXY, +0.39% firmed 0.4% in Tuesday trade to 95.56. The index, which tracks the buck’s strength against a half-dozen rivals, rose 0.7% in August and has gained 1.7% over the past three months.
“Gold continues to be a dollar story. As soon as the greenback strengthens again, the precious metal declines,” wrote Carlo Alberto De Casa, chief analyst at Activtrades.
In exchange-traded metals products, the popular SPDR Gold ETF GLD, -0.11% declined 0.4% and the VanEck Vectors Gold Miners ETF GDX, -0.75% lost 0.5%, while the iShares Silver SLV, -0.36% gave up 1.7% in premarket trade.
Elsewhere in the commodity complex, December copper HGZ8, -2.49% traded 7 cents, or 2.5%, lower at $2.605 a pound, after the contract lost 6.4% in August. October platinum PLV8, -1.63% fell 1.9% to $772 an ounce, after settling on Friday with a monthly loss of roughly 6.6%, while December PAZ8, -2.67% palladium shed 2.8% to $943.10 an ounce, after posting an August climb of 4.5%.
