Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold hits 6-month maximums
Wall Street’s recent rebound can’t scare off gold bugs. They have got a host of fears on their side to back the yellow commodity’s status of a safe haven.
As a matter of fact, the S&P 500 and the Dow went up over 4% each. As for the Nasdaq, it managed to rally over 5% in the first day of trading after the Christmas holiday. In order to soothe investors, a White House official told that the head of the key US bank faced no risk of losing his position and American leader was satisfied with his Treasury Secretary.
Meanwhile, American crude futures managed to ascend by 9% in a shocking halt to a market, which had been in freefall for over two weeks.
Meanwhile, the USD index headed north, adding 0.6% and trading at 96.583.
As for the yellow metal, this commodity held its own, reaching a fresh six-month maximum above $1,280.
On the Comex exchange, gold futures gained $1.20 being worth $1,273 a troy ounce. Evidently, this outcome turned out to be the seventh higher settlement for eight trading sessions for this commodity. The session maximum accounted for $1,282.30. Such a reading hasn’t been observed since June.
Market experts told that the yellow metal managed to retain its safe-haven status because some of America’s issues were more worrisome than Britain’s Brexit or the economic troubles of the EU.
The yellow metal’s strength for recent weeks has spurred rumors that it’s returning to the $1,300 territory last observed in June.
As for other precious metals, silver futures headed north by 1.9% on the Comex exchange ending up with $15.10 a troy ounce.
Palladium surged by up to 1% trading at $1,187.25 per ounce. As for platinum, it tacked on by about 1.2% being worth $799.
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!