Gold prices retreat from their highest level since April

METALS STOCKS Gold futures retreated Monday, pressured by some early strength in the U.S. dollar and Treasury yields, after posting a fifth straight weekly gain to

end last week at their highest price since April. Price action Gold for February delivery declined by $3.10, or 0.2%, to $1,925.10 per ounce on Comex. Silver for

March delivery declined by 66.5 cents, or 2.7%, to $23.27 per ounce. April platinum climbed by $1.40, or 0.1%, to $1,049.20 per ounce while March palladium fell

by $3.20, or 0.3%, to $1,720 per ounce. Copper for March traded at $4.2585 per pound, down nearly 0.2%.

Market drivers After impressive recoveries in the past two and a half months, “traders are wondering whether it still make sense to keep on buying gold and silver when the

[Federal Reserve] is still raising interest rates,” said Fawad Razaqzada, market analyst at City Index and, in an article Monday. “The market has become

confident that the hiking cycle will soon stop as inflationary pressures continue to wane, but the noticeable recovery in oil prices this year means there is a risk that inflation

could remain stickier than expected,” he said. Also, expectations of a sharp economic slowdown have “not come to fruition yet, which further reduces the need for the Fed to apply

the brakes on its hiking cycle too prematurely.”