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Gold Turns Positive for the Week, Rallies 2% on Slumping US Dollar

Summary:
Gold futures turned positive for the week on Friday, rallying about 2% on a slumping US dollar and renewed stimulus hopes. As the yellow metal climbed back above the important ,900 level, will gold prices make another push for ,000? The demand is still there as new data indicate that investor interest has never been higher, so if the fundamentals continue to support gold, prices might flirt with record highs by the year’s end. December gold futures soared .20, or 1.86%, to ,930.30 per ounce at 18:13 GMT on Friday on the COMEX division of the New York Mercantile Exchange. Gold prices, which are trading at a three-week high, will settle the trading week high up by nearly 1%, adding to their year-to-date gains of 27%. Silver, the sister commodity to gold, spiked above

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Gold futures turned positive for the week on Friday, rallying about 2% on a slumping US dollar and renewed stimulus hopes. As the yellow metal climbed back above the important $1,900 level, will gold prices make another push for $2,000? The demand is still there as new data indicate that investor interest has never been higher, so if the fundamentals continue to support gold, prices might flirt with record highs by the year’s end.

December gold futures soared $35.20, or 1.86%, to $1,930.30 per ounce at 18:13 GMT on Friday on the COMEX division of the New York Mercantile Exchange. Gold prices, which are trading at a three-week high, will settle the trading week high up by nearly 1%, adding to their year-to-date gains of 27%.

Silver, the sister commodity to gold, spiked above $25 for the first time in a month. November silver futures advanced $1.254, or 5.23%, to $25.125 per ounce. The white metal, which is at a one-month high, will record a 5.05% weekly jump. So far this year, silver prices are up 41%.

A plunging greenback is the main driver for the metals market’s ascent. The US Dollar Index, which measures the greenback against a basket of currencies, fell 0.58% to 93.07, from an opening of 93.56. The index will suffer a 0.85% weekly loss, piling on to its YTD decline of 3.45%. A lower buck is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

The other factor is the fiscal stimulus disarray. President Donald Trump proposed a $1.8 trillion stimulus and relief package, $400 billion less than what the Democrats want. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed negotiations over the coronavirus aid plan.

Gold and silver, as well as the broader financial market, are edging higher on bets that former Vice President Joe Biden would win the 2020 presidential election. This signals that investors are anticipating even more stimulus should Biden beat Trump next month.

Meanwhile, investor interest in bullion has been skyrocketing this year, says the World Gold Council (WGC). The organization reported that gold-backed exchange-traded funds (ETFs) added more than 1,000 tons of bullion worth about $60 billion in the first nine months of 2020.

This year, gold-backed ETFs and comparable products have experienced net inflows of 1,003 metric tons, surpassing the previous 2009 record of 646 metric tons. In total, gold ETF holdings spiked to a new record of 3,880 metric tons.

In other metal commodities, November copper futures tacked on $0.042, or 1.38%, to $3.084 per pound. November platinum futures gained $33.80, or 3.91%, to $897.80 an ounce. November palladium futures picked up $67.00, or 2.79%, to $2,470.00 per 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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