Gold rises on weakened dollar as the currency fell to its lowest level in more than two years against the euro early Wednesday, bolstering the yellow metal as an alternate investment. However, news that Britain approved a COVID-19 vaccine developed by AstraZeneca and Oxford University is keeping gold from soaring.
Front-month gold futures edged up $2,50 to $1,882.90 an ounce Tuesday on Comex. The February contract slipped 30 cents in the first two days of this week. Both this week and last were shortened because of holidays, and trading was expected to be light. Currently, the February contract is up over $4.00 an ounce to $1,887.50 and the DG spot price is at $1,886.10.
Gold is up more than $350 — or 24% — so far this year as investors have flocked to the metal because of uncertainty from the coronavirus pandemic and the economy. Bullion is up 5.7% this month, on track for its first monthly gain since July.
The yellow metal hovered just below $1,900 an ounce, supported by uncertainty over the coronavirus pandemic and its impact on the economy. Cases have mounted, even as early vaccination efforts have begun.
The COVID-19 virus has killed almost 1.79 million people worldwide and sickened about 81.9 million. About 24% of the cases — and 19% of the deaths — are in the U.S. The country has about 19.5 million cases, more than any other nation. Colorado health officials said Tuesday that they had identified the first case of a more-contagious variant first identified in the U.K. in the state.
Senate Majority Leader Mitch McConnell on Tuesday halted an initial attempt to approve $2,000 stimulus checks — as opposed to the $600 in the pandemic-relief bill signed by the president — even as more Republicans joined the effort. The package is considered bullish for gold because it’s typically used as a hedge against inflation triggered by stimulus measures.
McConnell appeared to want to combine a vote on increased payments with the establishment of a commission to study election fraud and a repeal of liability protections for technology companies. The move left the likelihood of a higher payment in doubt.
Economic releases are limited this week, but investors are awaiting U.S. weekly initial jobless claims Thursday.
Front-month silver futures dropped 1.2% Tuesday to settle at $26.22 an ounce on Comex. The March contract advanced 1.2% in the first two days of the week. Silver is up 16% this month and 46% this year. The March contract is up just shy of $0.20 an ounce to $26.410 and the DG spot price is at $26.34.
Spot palladium dropped 0.5% Tuesday to $2,347.50 an ounce and is down the same amount so far this week. It has declined 2.3% this month and is up 21% this year. Currently, the DG spot price for palladium is up over $18 an ounce to $2,367.50.
Spot platinum increased 1.2% Tuesday to $1,058.40 an ounce and is up 2.8% in the first two days of the week. The metal has advanced 9.1% this month and 9.5% this year. The DG spot price for platinum is currently up over $14 an ounce to $1,074.00.
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