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Gold Rises on Weaker US Dollar, Investors Weighing COVID-19 Stimulus Talks

Summary:
Gold futures are posting modest gains to start the trading week as the yellow metal finds direction on a weaker US dollar and investors weighing coronavirus stimulus and relief negotiations. Gold prices are coming off a weekly loss, and they are looking to jumpstart a rally on the inflation hedge aspect. Could the precious metal touch the range of ,920 and ,930 this week? December gold futures tacked on .00, or 0.31%, to ,912.40 per ounce at 16:53 GMT on Monday on the COMEX division of the New York Mercantile Exchange. Gold endured a weekly drop of 1.5% last week, paring its year-to-date surge to below 26%. Silver, the sister commodity to gold, is rebounding from last week’s decline. November silver futures advanced %excerpt%.32, or 1.31%, to .725 per ounce. The white metal slumped

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Gold futures are posting modest gains to start the trading week as the yellow metal finds direction on a weaker US dollar and investors weighing coronavirus stimulus and relief negotiations. Gold prices are coming off a weekly loss, and they are looking to jumpstart a rally on the inflation hedge aspect. Could the precious metal touch the range of $1,920 and $1,930 this week?

December gold futures tacked on $6.00, or 0.31%, to $1,912.40 per ounce at 16:53 GMT on Monday on the COMEX division of the New York Mercantile Exchange. Gold endured a weekly drop of 1.5% last week, paring its year-to-date surge to below 26%.

Silver, the sister commodity to gold, is rebounding from last week’s decline. November silver futures advanced $0.32, or 1.31%, to $24.725 per ounce. The white metal slumped more than 3% last week, but it is still up more than 38% so far this year.

A lower dollar is lifting gold and silver prices to start the trading week. The US Dollar Index, which measures the greenback against a basket of currencies, plunged 0.43% to 93.28, from an opening of 93.71. The index recorded a tepid weekly gain of 0.3% last week, but it is still down about 3% in 2020. A sliding buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

Bullion prices are finding support on inflation concerns, with Washington on track to vote and potentially approve a fresh COVID-19 stimulus and relief package. House Speaker Nancy Pelosi gave the White House 48 hours to agree to a deal. Republicans and Democrats have stalled talks over the price-tag of a bill, differing by about $400 billion.

Chinese data is also in focus. The world’s second-largest economy recorded positive gross domestic product (GDP), industrial production, and retail sales data, and this is positive news for the metal commodities market since Beijing is the world’s top importer of gold and silver.

Overseas, there has been positive development on the coronavirus vaccine front in the United Kingdom, as well as concerns over new restrictions across Europe.

The consensus on Wall Street is that gold prices will top $2,000, but it depends on if gold can trade above $1,920 over the next month. Citi also released its latest forecast for the white metal, projecting that silver prices will trade above $40 over the next 12 months on sustained investor demand and a recovery in industrial demand.

In other metal markets, December copper futures picked up $0.0195, or 0.64%, to $3.087 per pound. December platinum futures shed $5.70, or 0.66%, to $863.60 an ounce. December palladium futures added $12.40, or 0.53%, to $2,354.70 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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