Monday , September 28 2020
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Gold Tops $2,000, Silver Rallies 5% on Stimulus Measures

Summary:
Gold futures topped ,000 for the first time in history, while silver prices rallied 5% to soar past . The precious metals are gaining on fiscal and monetary stimulus measures, as well as potential economic implications amid the coronavirus pandemic. Now that gold has reached this important milestone, will the yellow metal next flirt with ,100? December gold futures soared .80, or 1.39%, to ,014.60 per ounce at 16:36 GMT on Tuesday on the Comex division of the New York Mercantile Exchange. The yellow metal has been soaring ever since the massive selloff during the market meltdown in March, surging 33% year-to-date. Silver, the sister commodity to gold, is performing even better than the yellow metal. September silver futures advanced .258, or 5.15%, to .675 an ounce.

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Gold futures topped $2,000 for the first time in history, while silver prices rallied 5% to soar past $25. The precious metals are gaining on fiscal and monetary stimulus measures, as well as potential economic implications amid the coronavirus pandemic. Now that gold has reached this important milestone, will the yellow metal next flirt with $2,100?

December gold futures soared $26.80, or 1.39%, to $2,014.60 per ounce at 16:36 GMT on Tuesday on the Comex division of the New York Mercantile Exchange. The yellow metal has been soaring ever since the massive selloff during the market meltdown in March, surging 33% year-to-date.

Silver, the sister commodity to gold, is performing even better than the yellow metal. September silver futures advanced $1.258, or 5.15%, to $25.675 an ounce. The white metal has climbed 74% since May, bringing its year-to-date spike to 44%.

With the US government poised to pass another multi-trillion-dollar stimulus and relief package ahead of the Senate breaking for recess on Friday, investors poured into gold over inflation fears. As Congress continues to spend trillions of dollars, the Federal Reserve is still engaging in a massive money-printing scheme to support the economy in the aftermath of the COVID-19 pandemic. Consumer prices have already posted their biggest monthly gain in several years.

Meanwhile, as the number of confirmed coronavirus cases continues to increase across the country, there is widespread worries of the negative economic implications the resurgence may have on the world’s largest economy. There has been a lot of talk of either shutting down pockets that have experienced dramatic rises in infections or doing an on-again-off-again lockdown to mitigate the spread.

US-China tensions are having an additional impact on metal prices. Beijing has slammed President Donald Trump’s ban on TikTok and forcing the China-owned social media platform to sell its US operations. Microsoft is the most likely buyer, but there have been reports that Apple is considering a higher bid than its tech competitor.

The US dollar is posting a modest gain on Tuesday, although this is having minimal effect on the price of gold. The US Dollar Index, which gauges the greenback against a basket of currencies, rose 0.11% to 93.45, from an opening of 93.35. A stronger buck is bad for dollar-denominated commodities because it makes it more expensive for foreign investors to purchase.

In other metal markets, September copper futures fell $0.0175, or 0.6%, to $2.8945 per pound. September platinum futures tacked on $19.40, or 2.08%, to $950.50 per ounce. September palladium futures picked up $26.70, or 1.25%, to $2,166.20 an ounce.

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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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