Gold pops on new stimulus hopes this morning as Secretary Mnuchin announces new meetings in coming weeks. The yellow metal had been holding steady fighting pressure following yesterday’s announcement by Mnuchin that key lending programs at the Federal Reserve would expire on Dec. 31, putting the future of fiscal support in doubt.
This morning, Mnuchin explained that he and White House chief of staff Mark Meadows with Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy later today to brainstorm ideas for a more-targeted relief package that they would then discuss with Democrats in the coming weeks. DG spot gold jumped over $10 an ounce on the news.
Investors have been watching talks between the White House and Democrats in Congress for the past few months in hopes that they would reach an agreement on further U.S. stimulus. Fed officials have also called for more aid to prop up the economy.
“The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy,” according to the statement late Thursday.
Gold futures dropped 0.7% Thursday to settle at $1,861.50 an ounce on Comex, and the December contract dropped 1.3% in the first four days of the week. Gold is up more than $300 — or 22% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. It slipped 0.8% in October, its third consecutive monthly decline. Currently, the December contract is up over $14.00 an ounce to $1,875.90 and the DG spot price is $1,880.10.
Holdings in SPDR Gold Trust fell 0.14% Thursday to 1,217.25 metric tons, Reuters reported.
Shipments of gold, which flipped to east to west rather than west to east because of the pandemic, are switching back, according to a Reuters report. Swiss bullion imports from Asia fell in October and it exported more to India than during any month since May 2019. India and China are the world’s biggest gold jewelry markets.
The virus known as COVID-19 has killed 1.36 million people worldwide and sickened 56.8 million. Almost 21% of the cases — and 19% of the deaths — are in the U.S. The country has more than 11.7 million cases, more than any other nation.
Pandemic-related lockdowns have sent millions of Americans into unemployment. Weekly initial jobless claims ticked up last week, rising for the first time since early October.
Silver futures fell 1.6% Thursday to settle at $24.05 an ounce on Comex. The December contract decreased 2.9% in the first four days of the week. The most active contract increased 0.6% in October. The December contract is currently up over $0.45 an ounce to $24.500 and the DG spot price is $24.52.
Spot palladium lost 1.6% Thursday to $2,331.10 and was down 0.3% so far this week. It dropped 4.5% in October. Spot platinum retreated 0.3% Thursday to $951.70 an ounce. It rose 5.9% in the first four days of the week and fell 6% in October. Currently, the DG spot price for platinum is up over $15 an ounce to $969.00 and palladium is up to $2,344.20.
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