Gold Edges Toward $1,800

Gold Edges Toward $1,800

Gold edges toward $1,800, rising early Monday, heading for its best quarter since 2016, as cases of the coronavirus around the world topped 10 million, spurring an investor flight to safety.

The yellow metal continued to move closer to the psychological threshold at $1,800 an ounce last seen in 2011.

August gold futures rose 1.6% last week to settle at $1,780.30 an ounce on Comex after rallying 0.6% for the day. Futures are up 1.6% for the month, through Friday, and 12% for the second quarter. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, rose 0.3% Friday. The August contract is currently flat at $1,780.30, while the DG spot price it $1,768.10.

Investors increased their bullish positions in Comex gold and silver contracts in the week ended June 23, according to the Commitments of Traders report released Friday by the U.S. Commodities Futures Trading Commission.

Florida, Texas and California ordered new closures as infection rates spiked again in those states, putting a dent in plans for a swift economic recovery. Investors braced themselves for the potential economic impact of the worsening pandemic and turned to the yellow metal as a safe-haven investment.

The virus known as COVID-19 has killed almost 502,000 people worldwide and sickened 10.1 million. About 25% of the cases — and the deaths — are in the U.S. The country has 2.42 million cases — more than any other nation.

In economic news this week, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are set to testify before a congressional committee on Tuesday. And the U.S. Labor Department on Thursday will release its unemployment data for June along with weekly initial jobless claims. The initial jobless claims number has been above 1 million in each of the past 14 weekly reports.

First-of-the-month manufacturing data from the U.S. and other key economies around the globe are due out Wednesday.

Silver futures gained 0.8% last week to settle at $18.17 an ounce on Comex after the most-active September contract rose 0.7% Friday. Silver is down 1.8% for the month and up 28% for the quarter. The September contract is currently down a bit at $18.030, while the DG spot price it $17.79.

Spot palladium decreased 1.3% last week to $1,906.80 an ounce, though it gained 2% Friday. It’s down 2.2% for the month and 21% for the quarter to date. Spot platinum dropped 0.7% last week to $814.20 an ounce and rose 1% Friday. It’s down 4.4% for the month and up 12% for the quarter. Currently, the DG spot price for platinum is $821.90, while palladium it $1,932.20.

 

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