The prospect of additional U.S. stimulus after Joe Biden is sworn in as president next week and the Democrats take control of the Senate also boosted the precious metal. Benchmark 10-year Treasury yields retreated from 10-month highs, also pulling down the dollar and bolstering bullion.
Front-month gold futures slipped 0.4% Tuesday to settle at $1,844.20 an ounce on Comex. The February contract rallied 0.5% in the first two days of the week after tumbling 3.2% last week. The yellow metal climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the coronavirus pandemic. Currently, the February contract is up over $15.00 an ounce to $1,859.90 and the DG spot price is $1,861.30.
Political uncertainty in the U.S. and mounting coronavirus rates around the world continued to make gold attractive. The U.S. House of Representatives voted late Tuesday to call on Vice President Mike Pence to invoke the 25th Amendment to the U.S. Constitution to strip outgoing President Donald Trump of his authority for inciting a mob that attacked the U.S. Capitol last week. Before the vote, Pence has rejected the effort. An impeachment vote by the House is expected to follow Wednesday.
The political situation, the state of the COVID-19 pandemic and questions about the economy are all likely to continue to drive precious metals this week.
U.S. inflation data for December is due out Wednesday, along with the Federal Reserve’s Beige Book, in which each of the 12 regional banks reports on economic conditions. Weekly initial jobless claims are due Thursday, with industrial production, retail sales and producer price index data Friday.
The COVID-19 virus has killed more than 1.96 million people worldwide and sickened about 91.6 million. About 25% of the cases — and 19% of the deaths — are in the U.S. The country has more than 22.8 million cases, more than any other nation.
Front-month silver futures rose 0.6% Tuesday to settle at $25.44 an ounce on Comex. The March contract climbed 3.2% in the first two days of this week after tumbling 6.7% last week. Silver surged 17% in December and 47% in 2020. The March contract is up currently $0.15 an ounce to $25.585 and the DG spot price is $25.56.
Spot palladium rose $2.50 Tuesday to $2,395.00 an ounce and is up 1.7% so far this week. It slipped 3.9% last week after rallying 2% in December and 26% in 2020. The DG spot price is up over $30 an ounce to $2,409.00.
Spot platinum rose 1.7% Tuesday to $1,068.60 an ounce and is up 0.9% so far this week. The metal lost 1.3% last week after adding 11% in December and 11% in 2020. Currently, the DG spot price is up over $40 an ounce to $1,110.50.