Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold is intact
On Monday, gold was nearly intact having reported three-straight winning weeks, as market participants prepared for Friday’s reports on American third-quarter surge, while monetary policy decisions this week from the ECB and Bank of Canada are going to be monitored by market participants too.
As a matter of fact, December delivery gold futures managed to inch up by up to 0.03% on the Comex exchange being worth nearly $1,224.10 a troy ounce. On Friday, the yellow metal was nearly intact following a choppy trading marathon, but still concluded the trading week with a 0.59% leap. It appears to be its third-straight weekly ascend.
The yellow metal has been underpinned by dismal stock markets as well as increased geopolitical risks, backing safe-haven demand for gold, while this week market participants shifted their attention to GDP data anticipated to show that American economic surge speeded down in the third quarter from the second one, when the American economy surged at its fastest tempo for four years.
Market participants will also be obtaining an update on the health of the American housing market, affected by soaring borrowing costs as an outcome of Fed rate lifts, with the publication of figures on new as well as pending home sales.
In addition to this, Friday’s data revealed that in September sales of existing homes headed south for a sixth-straight month. The given outcome turned out to be the most impressive dip for more than two years.
As for other metals, silver futures headed south by approximately 0.62% coming up with an outcome of at $14.565 a troy ounce.
In addition to this, palladium futures managed to head north by up to 1.82% ending up with $1,089.40 an ounce. Besides this, sister metal platinum declined by about 1.15% demonstrating a result of $826.40
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!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.