Gold up this morning on softer dollar, but hopes for progress in COVID-19 treatment reined in the safe-haven metal a bit. The dollar index dipped 0.4% after hitting a more than one-week high in the previous session.
Investors have been taking profits since the contract closed at a high of $2,069.40 on Aug. 6, but gold maintained support as a hedge during volatile times. The yellow metal is up 28% so far this year, through Friday.
Gold futures fell $2.80 last week to settle at $1,947.00 an ounce on Comex. The December contract dropped 50 cents Friday. Futures are down 2% so far this month. Currently, the December contract is $1,954.40, while the DG spot price is $1,942.70.
Physical gold dealers in India last week offered the steepest discounts in a month and a half, Reuters reported, citing a dearth of demand and an influx of bullion from the United Arab Emirates.
Speculators raised their bullish positions in Comex gold and silver contracts in the week ended Aug. 18, according to the weekly Commitments of Traders report released Friday by the U.S. Commodities Futures Trading Commission. But Delbrook Capital Advisors Inc., a hedge fund specializing in metals and mining, trimmed its exposure to precious metals after more than doubling its return this year during the rally, Bloomberg reported.
Silver futures increased 2.4% last week to settle at $26.88 an ounce on Comex, though the December contract dropped 1.6% Friday. The most active contract has gained 11% so far this month after soaring 30% in July. Currently, the September contract is at $26.975 an ounce, while DG spot is $26.87.
Investors are awaiting further direction this week from Federal Reserve Chairman Jerome Powell, who is scheduled to speak on the state of the economy Thursday at the Kansas City Fed’s annual symposium typically held in Jackson Hole, Wyoming, which is going to be livestreamed this year. Any signals about additional monetary easing is likely to prove bullish for gold.
Investors are also watching a standoff between Democrats and Republicans over a new U.S. stimulus measure and an ongoing dispute between the U.S. and China over trade. Republicans will officially nominate President Donald Trump for re-election at their quadrennial convention this week. Democrats nominated Joe Biden last week.
The virus known as COVID-19 has killed more than 807,000 people worldwide and sickened 23.3 million. About 24% of the cases — and 22% of the deaths — are in the U.S. The country has 5.57 million cases, more than any other nation.
Spot palladium increased 3.3% last week to $2,187.80 an ounce, though it fell 0.2% Friday. Spot platinum decreased 2.7% last week to $926.10 an ounce, though it rose 0.5% Friday. DG spot palladium is currently $2,196.40 an ounce, while platinum is $938.20.
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