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Gold Tops $1,900 Before Paring Gains, Poised for Monster Week

Summary:
Gold futures topped ,900 to finish the trading week before giving up some of their gains. The yellow metal will record a huge weekly gain a weaker US dollar, escalating US-China tensions, and global economic uncertainty due to the coronavirus pandemic elevated gold prices. Now that the precious metal has topped ,900 twice this week, is ,000 the next stop? August gold futures rose .70, or 0.35%, to ,896.70 per ounce at 17:02 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold is on track for a 5% weekly surge, bringing its year-to-date gain to 25%. The record intraday high for gold stands at ,923.70 per ounce which occurred in September 2011. The highest the August contract rallied to was ,904.60 an ounce. Silver, the sister commodity to gold, enjoyed

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Gold futures topped $1,900 to finish the trading week before giving up some of their gains. The yellow metal will record a huge weekly gain a weaker US dollar, escalating US-China tensions, and global economic uncertainty due to the coronavirus pandemic elevated gold prices. Now that the precious metal has topped $1,900 twice this week, is $2,000 the next stop?

August gold futures rose $6.70, or 0.35%, to $1,896.70 per ounce at 17:02 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold is on track for a 5% weekly surge, bringing its year-to-date gain to 25%. The record intraday high for gold stands at $1,923.70 per ounce which occurred in September 2011. The highest the August contract rallied to was $1,904.60 an ounce.

Silver, the sister commodity to gold, enjoyed an even better week but prices are trading lower. September silver futures fell $0.108, or 0.47%, to $22.88 per ounce. The white metal will record a weekly spike of more than 15%, advancing 28% so far this year.

There are many factors driving gold and silver prices.

In response to Washington ordering China to shut down its consulate in Houston, Beijing directed the US to close its consulate in Chengdu. The US government is alleging that Chinese agents attempted to steal data from facilities in Texas. The geopolitical strife is in addition to trade tensions over China failing to meet the provisions inside the phase one agreement, as well as Beijing’s handling of COVID-19.

slumping US dollar contributed to the metals market’s jump this week. The US Dollar Index, which gauges the greenback against a basket of currencies, slipped 0.3% to 94.41. The index is poised for a weekly slide of 1.6%, adding to its YTD decline of 2%. A weaker buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

The coronavirus public health crisis continues to linger in the background as the outbreak continues to intensify across the US. Many health authorities are discussing the possibility of reinstituting lockdown measures in hotspots, which would ultimately hurt businesses – large and small – and potentially the stock market.

Some market observers think that millennial investors on Robinhood are also supporting gold prices as many begin chasing gold as it continues to test all-time highs. According to internal data, Robinhooders have added thousands of new positions in gold and silver exchange-traded funds (ETFs). But this might be a drop in the bucket to the real meat and potatoes of gold’s rally: expansive fiscal and monetary policy employed by governments and central banks worldwide.

In other metal markets, September copper futures dropped $0.0465, or 1.58%, to $2.892 per pound. September platinum futures shed $8.10, or 0.84%, to $955.70 per ounce. September palladium futures soared $51.00, or 2.28%, to $2,290.80 an ounce.

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


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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

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