Gold slips back under $2,000 an ounce as investors sought returns in other assets after the Standard & Poor’s 500 Index reached a new record Tuesday and the dollar strengthened from near a two-year low.
The yellow metal settled above $2,000 an ounce Tuesday for the first time in more than a week, making it subject to profit taking. It advanced 3.3% in the first two days of the week.
Investors are awaiting the release later today of the minutes of the last meeting of Federal Reserve policy makers for indications on whether more stimulus measures will be forthcoming. Central bank stimulus is typically bullish for precious metals.
Gold futures rose 0.7% Tuesday to settle at $2,013.10 an ounce on Comex. The metal has rebounded over the past two days after posting its worst week in more than five months last week. The December contract closed at a high of $2,069.40 on Aug. 6. Currently, the December contract is off $14.90 an ounce to $1,998.20, while the DG spot price is at $1,996.00.
Gold has climbed 32% so far this year because of uncertainty triggered by the coronavirus pandemic and its effects on the global economy. A dispute between the U.S. and China and a weak dollar have also supported the precious metal. But profit taking and rising bond yields halted the advance last week.
Silver futures increased 1.5% Tuesday to settle at $28.24 an ounce on Comex. The December contract is up 7.6% in the past two days. The most active contract is up 17% so far this month after soaring 30% in July. Currently, the December contract is down $0.158 an ounce to $28.085, while the DG spot price is at $28.02.
The virus known as COVID-19 has killed more than 781,000 people worldwide and sickened 22.1 million. About 25% of the cases — and 22% of the deaths — are in the U.S. The country has 5.48 million cases, more than any other nation.
U.S. President Donald Trump said he canceled trade talks with China scheduled for last weekend. A trade standoff between the two superpowers fueled gold’s rally through most of 2019. Meanwhile, House Speaker Nancy Pelosi indicated Democrats might cut their requests in a stimulus proposal to make a deal with Republicans, then lobby for more after the November presidential election.
Former Vice President Joe Biden officially became the Democratic Party’s nominee for president Tuesday evening at the party’s convention. Republicans will officially nominate President Donald Trump for re-election at their convention next week.
Spot palladium decreased 0.2% Tuesday to $2,212.90 an ounce, but is up 4.5% for the first two days of the week. Spot platinum increased 1% Tuesday to $971.10 an ounce and is up 2.1% so far this week. The current DG spot price for palladium slipped $48 to $2,169.90, while platinum is off $12 to $957.20.
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