Tuesday , April 7 2020
Home / Commodity Blog / Gold Rises on Renewed Safe-Haven Appeal, Weaker Dollar

Gold Rises on Renewed Safe-Haven Appeal, Weaker Dollar

Summary:
Gold futures are trading higher to finish a turbulent trading week, but they are still on track for a huge weekly loss. The yellow metal is finding support on renewed safe-haven appeal and a lower US dollar. Gold has experienced a significant plunge throughout the market crash as investors liquidate their assets, including gold, to cover margin calls and to build their cash positions. April gold futures jumped .10, or 0.62%, to ,488.50 per ounce at 17:01 GMT on Friday on the Comex division of the New York Mercantile Exchange. Despite the end-of-week push, gold is poised for a weekly decline of about 3%. Year-to-date, gold is down just 2%. Silver, the sister commodity to gold, is rallying to close out the trading week. May silver futures picked up %excerpt%.44, or 3.6%, to .57 per ounce.

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Vladimir Vyun writes Video: Gold and Silver Forecast for April 6, 2020

Mike Shedlock writes Shedlock: Recession Will Be Deeper Than The Great Financial Crisis

Andrew Moran writes Gold Slumps 1% on Strengthening Dollar, Market Confidence

Vladimir Vyun writes Ascending Triangle Pattern on 4-Hour Chart of Gold as of 2020-03-29

Gold futures are trading higher to finish a turbulent trading week, but they are still on track for a huge weekly loss. The yellow metal is finding support on renewed safe-haven appeal and a lower US dollar. Gold has experienced a significant plunge throughout the market crash as investors liquidate their assets, including gold, to cover margin calls and to build their cash positions.

April gold futures jumped $9.10, or 0.62%, to $1,488.50 per ounce at 17:01 GMT on Friday on the Comex division of the New York Mercantile Exchange. Despite the end-of-week push, gold is poised for a weekly decline of about 3%. Year-to-date, gold is down just 2%.

Silver, the sister commodity to gold, is rallying to close out the trading week. May silver futures picked up $0.44, or 3.6%, to $12.57 per ounce. The white metal will record a weekly collapse of more than 14%, adding to its year-to-date drop of 30%.

Metal commodities are gaining on a falling US dollar, despite the currency’s best five-day performance since the global financial crisis more than a decade ago. The US Dollar Index, which measures the greenback against a basket of currencies, slipped 0.15% to 102.61. A weaker buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

With the US government looking to inject ash into the economy through direct relief and added stimulus measures, investors are not liquidating their assets as much as they had been the last couple of weeks. Unless there is another tsunami of panic selling, analysts believe gold will trade higher in the near-term.

Moreover, as the Federal Reserve and other central banks pump trillions of dollars into the financial system, there is a renewed appetite for both risk and safe-haven assets. While volatility appears to have somewhat slowed down in the last two trading sessions, there is still reportedly a huge demand for precious metals. The concern may be justified due to the historic monetary expansion.

In other metal markets, May copper futures were flat at $2.185 per pound. May platinum futures tacked on $26.60, or 4.46%, to $623.40 per ounce. May palladium futures advanced $19.60, or 1.28%, to $1,549.00.

If you have any questions and comments on the commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2020. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *