Gold rises on weaker dollar as investors seek the yellow metal’s safe haven against concerns over the pandemic and uncertainties over the presidential election.
Gold appears headed for a weekly gain, currently up .06% on the week, while the dollar is down 1% for the week. Gold futures had fallen 1.3% Thursday to settle at $1,904.60 an ounce on Comex. The yellow metal is up almost $400 — or 25% — 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 to $1,913.40 an ounce, while the DG spot price is $1,910.80.
Federal Reserve Governor Lael Brainard called Wednesday for more fiscal support from Congress to prop up the economy, and House Speaker Nancy Pelosi signaled optimism in her ongoing talks with Treasury Secretary Steven Mnuchin. But the Senate would have to pass any agreement, and Senate Majority Leader Mitch McConnell has nixed the idea of considering it before the Nov. 3 election.
U.S. President Donald Trump and former Vice President Joe Biden squared of in their final debate before the election on Thursday evening, discussing topics ranging from the response to COVID-19 to immigration policy, health-care reform and the future of the energy industry.
Uncertainty over the economy, the election and Brexit talks have put a floor under prices, making gold a more attractive hedge investment. Pandemic-related lockdowns have sent millions of Americans into unemployment.
New applications for unemployment benefits fell to 787,000 last week, almost the lowest level since pandemic lockdowns began in March, according to data released Thursday by the Labor Department. The figure was less than the 875,000 analysts had anticipated, the lowest total since Oct. 3 and the second lowest since March 14.
The virus known as COVID-19 has killed more than 1.14 million people worldwide and sickened 41.6 million. About 20% of the cases — and 20% of the deaths — are in the U.S. The country has 8.4 million cases, more than any other nation.
Silver futures decreased 2.1% Thursday to settle at $24.71 an ounce on Comex. The December contract gained 1.3% in the first four days of the week. The most active contract is up 5.2% this month after plunging 18% in September, gaining 18% in August and soaring 30% in July. Currently, the December contract is up to $24.905 an ounce, while the DG spot price is $24.82.
Spot palladium fell 1.2% Thursday to $2,396.50 an ounce and gained 2.3% in the first four days of the week. Spot platinum slid 0.8% Thursday to $891.40 an ounce and advanced 2.3% so far this week. DG spot price for platinum is solidly up this morning, currently at $924.50 an ounce, a gain of over $36, while palladium is up to $2,406.10 an ounce.
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