Gold’s overnight roller coaster heads for positive territory now as investors buy the dip. Early Friday, gold rose for the first time in three days as U.S. initial jobless claims climbed back above 1 million last week, sending investors to the yellow metal as a hedge against uncertainty. A few hours later the yellow metal slipped back on the dollar’s rebound with the December Gold contract falling to $1,916 an ounce, but it gold has reclaimed much of that turf and is back over $1,940.
Gold futures had slid 1.2% Thursday to settle at $1,946.50 an ounce on Comex. The metal dropped 0.2% in the first four days of this week. The December contract closed at a high of $2,069.40 on Aug. 6. Currently, the December contract is at $1,945.90 an ounce, while the DG spot price is $1,933.80.
Gold has climbed 29% 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.
Silver futures decreased 0.7% Thursday to settle at $27.30 an ounce on Comex. The December contract is up 4% in the past four days. The most active contract has gained 13% so far this month after soaring 30% in July. The December contract is currently $26.855, while the DG spot price is $26.67 an ounce.
The number of Americans filing new applications for unemployment benefits last week rose to 1.106 million, exceeding an estimate of 923,000 by economists polled by Dow Jones. Last week’s report was the first in 21 weeks in which claims came in below 1 million. That figure was revised up by 8,000 to 971,000. Millions of Americans have lost their jobs as a result of coronavirus lockdowns and their effect on the economy.
The virus known as COVID-19 has killed almost 794,000 people worldwide and sickened 22.7 million. About 25% 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.
China’s Commerce Ministry said Thursday that it would hold talks with U.S. trade officials in the next few days to evaluate progress on a Phase 1 trade deal which took effect in February. The pact resolved a trade standoff of more than a year that sent precious metals prices soaring. The U.S. hasn’t confirmed that the meeting will go ahead.
Former Vice President Joe Biden accepted the Democratic Party’s nomination for president Thursday evening at the party’s convention. Republicans will officially nominate President Donald Trump for re-election at their convention next week.
Spot palladium increased 1.1% Thursday to $2,193.00 an ounce and is up 3.5% for the first four days of the week. Spot platinum decreased 2.8% Thursday to $921.60 an ounce and is down 3.2% so far this week. Currently, the DG spot price for platinum is $911.00 an ounce and palladium is $2,187.70 an ounce.
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