Gold Above $1,800 At Five Week High

Gold Above $1,800 At Five Week High

Gold back above $1,800, up over $20 an ounce, headed for a second weekly rally at five week high as softness in the dollar made the yellow metal more attractive as an alternate investment.

The precious metal aiming for a second consecutive weekly advance amid increased speculation that central banks around the world could begin easing economic stimulus measures introduced to combat weakness caused by the pandemic and associated lockdowns. Federal Reserve policymakers meet next in early November.

December gold futures slipped 0.2% Thursday to settle at $1,781.90 an ounce on Comex, though the front-month contract is up 0.8% so far this week. Gold retreated 3.4% in September after gaining just 90 cents in August. It dropped $14.60 in the third quarter. The yellow metal is down 6% so far in 2021. Currently, the December contract is up $24.60 (+1.38%) an ounce to $1,806.50 and the DG spot price is $1,806.00.

The Federal Reserve isn’t expected to raise interest rates until the middle of next year, based on investor sentiment tracked in CME Group’s FedWatch Tool. But Fed asset purchases are widely expected to begin tapering as soon as this year. Central bankers have come under pressure to begin tapering and even raising rates because of rising inflation.

Atlanta Fed President Raphael Bostic said Thursday that an interest rate increase was likely by the end of 2022 and that he expects high inflation will persist into 2022.

Fed Chairman Jerome Powell is scheduled to participate in a policy panel Friday and may offer further guidance.

In economic news, the U.S. Conference Board’s leading economic index for September showed moderate U.S. growth in data released Thursday, while U.S. existing home sales surged last month in a report from the National Association of Realtors. Meanwhile, initial jobless claims fell again last week, according to the Labor Department.

December silver futures decreased 1.1% Thursday to settle at $24.17 an ounce on Comex, though the front-month contract advanced 3.5% in the first four days of the week. Silver retreated 8.2% in September, its fourth consecutive monthly decline, and plummeted 16% in the third quarter. The metal is down 8.5% so far this year. Silver prices are tied to industrial demand. The December contract is up currently by $0.335 (+1.39%) an ounce to $24.505 and the DG spot price is $24.49.

Spot palladium fell 2.7% Thursday to $2,034.50 an ounce and is down 2.9% so far this week. It lost 23% in September, 31% in the third quarter and is down 17% so far in 2021. Currently, the DG spot price is up $12.80 an ounce to $1,067.50.

Spot platinum dropped 0.4% Thursday to $1,054.80 an ounce and is down 1% so far this week. The metal lost 5.3% last month and 10% last quarter. It’s down 1.7% so far this year. The current DG spot price is down $13.10 an ounce to $2,021.50.


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