By Simon Kennedy and Sarah Turner, MarketWatch
LONDON (MarketWatch) — Gold futures moved up from near a five-week low Wednesday, with investors dipping a toe back into commodities following a recent selloff.
Gold for June delivery GCM11 +0.74% rose $12.10 to $1,492.10 an ounce in electronic trading, erasing its $10.60 slide to the lowest settlement level since April 14, made in the previous session.
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Markets Hub: Crude slips below $97
Crude-oil futures slid Tuesday as the dollar strengthened against the euro and as the selloff in gasoline futures remained a concern.
Silver for July delivery SIN11 +2.80% gained $1.10 to $34.59 an ounce, after dropping 64 cents in the Tuesday session in New York to its lowest close since Feb. 25.
Simon Denham, head of Capital Spreads, said the metals were benefitting from weakness in the dollar, though he gave little credit to the chance of a sustained rally for silver.
“Silver‘s attempts to bounce from its recent lows look all but over,” Denham said in an email.
The Dollar index DXY -0.11% was trading at 75.22, down from 75.441 in late North American trading on Tuesday as the currency continued to give back some of the sharp gains it has recorded since the start of the month. The U.S. currency generally moves inversely to commodities which are priced in dollars.
“The recent dollar strength seems to have just come to an end for now,” Denham said.
“Dollar bears will be thinking this could be a good opportunity to get short the dollar again, particularly if the debt ceiling issues start to boil over,” he added.
Oil and copper futures were also gaining ground in Wednesday electronic trading, with light crude for June delivery CLM11 +1.29% rising $1.38 to $98.29 a barrel on the Globex market.
Simon Kennedy is the City correspondent for MarketWatch in London.
Sarah Turner is MarketWatch's bureau chief in Sydney.
