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Gold approaches $1,300 once again
Britain’s economic and political issues along with a no-confidence vote on Prime Minister Theresa May following her unsuccessful Brexit deal vote gave gold traders a hope of getting back to maximums of above $1,300 an ounce.
On the Comex exchange, February delivery gold futures surged by 0.4% coming up with a reading of $1,293.80 per ounce having hit a session maximum of $1,295.
Bullion's spot price went up by 0.3% ending up with 1,293.59.
On Tuesday, both futures and bullion headed south after risk appetite got back to financial as well as commodity markets after China’s National Development and Reform Commission told it planned to make the first quarter a perfect start for the national economy, which drops a hint at a stimulus.
Market experts are assured that there could be up to 2 trillion Yuan worth of cuts in federal taxes as well as fees under the country’s stimulus measures to be disclosed in the nearer future.
The euphoria over China’s announcement rapidly fizzled on Wednesday, was replaced by new fears about a probable global recession. However, the yellow metal was still away from this year's maximums of above $1,300.40 recorded on the Comex exchange on January 4.
Aside from the three-week long partial American government shutdown as well as fears of a global economic downtime, gold traders paid much attention to Brexit talks that were going nowhere.
The no-confidence vote against Theresa, starting 2 PM ET showed up after the country’s Prime Minister faced the worst parliamentary defeat for about 100 years over her proposed agreement for Britain’s departure from the European bloc. The clock currently ticks toward March 29 final date for the UK to abandon the EU without or with an organized plan.
Palladium futures went up by 3.1% reaching $1,316.85.
Silver futures soared by 0.1% demonstrating $15.64.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!