Gold Futures Pop Higher Drawing Support from Higher Inflation in Much of the World

A firmer dollar can make assets priced in the currency comparatively more expensive to overseas buyers.

“The price of the precious metal remains supported, despite the strengthening dollar, as inflation-related worries drive higher demand for the safe haven of gold,” wrote Ricardo Evangelista, senior analyst at ActivTrades, in a daily research note.

December gold GCZ21, +0.01% GC00, +0.01% was trading $6.40, or 0.3%, higher at $1,873 an ounce, following a 0.1% decline on Monday, which ended a string of gains of the longest string of gains for a most-active contract, seven straight days, since a nine-day rise that ended on July 29, 2020, according to Dow Jones Market Data.

Commodity investors are training their eye on Tuesday’s data, which include a report on U.S. retail sales for October, and a report on import and export prices, both at 8:30 a.m. ET. A reading of U.S. industrial production at 9:15 a.m. may also be watched for signs of health of the world’s largest economy and its recovery from COVID-19.

Meanwhile, silver for December delivery SIZ21, +0.26% SI00, +0.26% was trading 25 cents, or 1%, higher at $25.35 an ounce.