Gold slips on economic recovery early Monday as the U.S. dollar index strengthened to its highest in several months and global economic uncertainty decreased. Advances in U.S. Treasury yields also pressured gold, because strength in the other assets raises the opportunity cost of holding bullion.
Front-month gold futures slipped 0.5% last week to settle at $1,734.70 an ounce on Comex after the June contract rallied 0.4% Friday. Gold is up 0.3% so far this month after posting its worst month since 2016 in February. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. The June contract is currently down by $11.00 an ounce to $1,722.90 and the DG spot price is $1,714.20.
Speculators boosted their bullish positions in Comex gold in the week ended March 23, according to the weekly Commitments of Traders report from the U.S. Commodity Futures Trading Commission.
Treasury yields neared a one-year high, and the dollar was firm as the U.S. continued to roll out vaccines at a faster pace than much of the world, including Europe, signaling potential for the economy to recover sooner.
The COVID-19 virus has killed more than 2.78 million people worldwide and sickened almost 127.1 million. About 24% of the cases — and 20% of the deaths — are in the U.S. The country has more than 30 million cases, more than any other nation.
Investors will be awaiting the release of U.S. President Joe Biden’s proposed infrastructure package on Wednesday for further direction, as well as the key monthly U.S. unemployment report for March, which is due out Friday.
May silver futures decreased 4.6% last week to settle at $25.11 on Comex, though the contract gained 0.3% Friday. Silver is down 5% so far this month after decreasing 1.8% in February, its first retreat in three months. It gained 1.9% in January and 47% in 2020. The May contract is currently down by $0.209 an ounce to $24.905 and the DG spot price is $24.80.
Spot platinum retreated 1.9% last week to $1,184.40 an ounce, though it rose 2.1% Friday. The metal has lost 0.9% in March after rallying 11% in February amid forecasts for higher demand and tighter supplies. The autocatalyst metal rose 0.5% in January and 11% in 2020. Currently, the DG spot price is up over $7 an ounce to $1,189.40.
Spot palladium gained 0.7% last week to $2,685.00 an ounce after advancing 1.8% Friday. It has risen 15% in March. The metal gained 4.9% in February, plummeted 9% in January and rallied 26% in 2020. The DG spot price for palladium is currently down $130.00 an ounce to $2,569.50.
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