Gold rose early Monday on dollar weakness and stimulus vote. The yellow metal had been near its lowest level in more than eight months, but climbed over $20 an ounce early today on the energy from Saturday’s vote by the U.S. House of Representatives that passed President Joe Biden’s $1.9 trillion stimulus measure. Gold has since lost a bit of altitude.
Investors were awaiting key U.S. manufacturing data for February for a snapshot on the state of the economy and further direction. Chinese factory activity expanded at a slower-than-expected pace last month, reaching the lowest level since May, according to data released Sunday.
April gold futures dropped 2.7% last week to settle at $1,728.80 an ounce Friday on Comex, capping the yellow metal’s worst month since 2016. Gold dropped 2.6% Friday. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. The April contract is currently up over $9.00 an ounce to $1,738.00 and the DG spot price is $1,735.70.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.6% Friday to the lowest level since May, Reuters reported. Meanwhile, speculators cut their bullish positions in Comex gold and silver in the week ended Feb. 23, according to the U.S. Commodity Futures Trading Commission’s weekly Commitments of Traders report released Friday.
Investors will be watching the progress of the stimulus bill through the U.S. Senate after the House passed the measure. Stimulus measures are typically seen as bullish for gold because they can be inflationary, and gold is a traditional hedge against inflation. The bill is designed as a shot in the arm to an economy still reeling from the pandemic.
The COVID-19 virus has killed more than 2.53 million people worldwide and sickened more than 114.1 million. About 25% of the cases — and 20% of the deaths — are in the U.S. The country has about 28.6 million cases, more than any other nation.
Investors will also be awaiting the key February employment report, due out Friday.
May silver futures declined 3.1% last week to settle at $26.44 on Comex after dropping 4.5% Friday. The metal decreased 1.8% in February, its first retreat in three months. Silver gained 1.9% in January and 47% in 2020. The May contract is currently up over $0.50 an ounce to $26.955 and the DG spot price is $26.87.
Spot platinum slipped 6.6% last week to $1,195.00 an ounce after dropping 3.5% Friday. The metal rallied 11% last month amid forecasts for higher demand and tighter supplies. The autocatalyst metal advanced 0.5% in January and 11% in 2020. Currently, the DG spot price is up over $20 an ounce to $1,210.20.
Spot palladium decreased 2% last week to $2,339.00 an ounce after decreasing 3.9% Friday. It increased 4.9% in February after plummeting 9% in January and rallying 26% in 2020. Th eDG spot price is currently up over $25 an ounce to $2,368.50.
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