Gold inches up Monday morning on weaker dollar, giving the yellow metal a boost off of its worst week since March, when the pandemic really began to spook all markets.
The dollar on Monday halted a rally that had pressured prices of the yellow metal. And fears that the colder winter months will bring a new wave of coronavirus cases, particularly in Europe, have tarnished the economic outlook. That uncertainty — and the fact that global coronavirus deaths are edging close to 1 million, are making gold a more attractive prospect as a safe haven.
Gold futures fell 4.9% last week to settle at $1,866.30 an ounce on Comex. The December contract decreased 0.6% Friday. It’s down 5.7% so far this month. Gold is still up more than $300 — or 23% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. The December contract is currently up over $7.00 an ounce to $1,874.10 and the DG spot price is up to $1,873.60.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.02% Friday to 1,266.84 metric tons, according to Reuters. Meanwhile, speculators cut their bullish positions in Comex gold and silver contracts in the week ended Sept. 22, according to the Commitments of Traders report from the U.S. Commodities Futures Trading Commission.
Investors are awaiting direction from Washington, where lawmakers continue to debate an additional stimulus measure to prop up the economy. Stimulus efforts are typically bullish for gold. They will also be closely watching the final weeks of the U.S. presidential race, particularly a debate between President Donald Trump and former Vice President Joe Biden on Tuesday evening.
Wednesday, China will release its closely watched manufacturing data for September, followed by the U.S. and other major economies on Thursday. The figures are used as a gauge of the health of the global economy and can drive precious metals. Also at the end of the week, the U.S. will release the latest jobless figures. Initial jobless claims for last week come out Thursday, followed by the key monthly unemployment rate for September on Friday. The pandemic has also cost millions of Americans their jobs.
The virus known as COVID-19 has killed almost 997,000 people worldwide and sickened nearly 33 million. About 22% of the cases — and 21% of the deaths — are in the U.S. The country has 7.11 million cases, more than any other nation.
Silver futures plunged 15% last week to settle at $23.09 an ounce on Comex after the December contract slipped 0.4% Friday. The most active contract is down 19% this month after gaining 18% in August and soaring 30% in July. The December contract is currently up over .19 an ounce to $23.285 and the DG spot price is up to $23.40.
Spot palladium fell 6.3% last week to $2,231.70 an ounce and dropped 0.6% Friday. It’s down 2.2% in September. Spot platinum decreased 8.8% last week to $854.90 an ounce after rising 40 cents Friday. It has fallen 9% so far this month. Currently, the DG spot price for platinum is up over $20 an ounce to $873.40, while palladium is up over $35 an ounce to $2,262.60.
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