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Gold is underpinned by wavering US currency
On Monday, gold managed to surge due to the fact market participants questioned the greenback jump’s near-term durability. Eventually, the evergreen buck’s weakness appears to be a boost for the most popular yellow metal, traditionally denominated in the American dollars.
December delivery gold futures GCZ8 gained 0.2% coming up with $1,202.90 an ounce. The previous week the yellow metal reported a narrow win after prices had faced weekly dips over the previous two weeks.
Assessing the purchasing potential of the American dollar versus its key rivals the USD index declined by about 0.3% being worth 94.71.
Besides this, gold also gained support from equities that showed a soggy start, suppressed after a streak of profits because US-China trade worries resumed. It was reported on Friday that US leader had told aides to go further with levies on $200 billion of China’s products. Over the weekend, China told that it might reject the offer for renewed trade negotiations if America was moving ahead with duties.
December delivery silver futures SIZ8 managed to acquire 0.4% trading at $14.20 an ounce. On Friday, these futures concluded at $14.142, which appears to be the lowest settlement since January 2016, as follows from FactSet data. The previous week this precious metal dived by 0.2%.
Besides this, December delivery copper futures HGZ8 went down by 0.7% reaching $2.6255 a pound, having reported a soar of about 0.9% the previous week. In addition to this, October delivery platinum futures PLV8 went down by 0.6% being worth $798 an ounce, following a weekly 2.3% jump. Besides this, December delivery palladium futures PAZ8 showed $971.90 an ounce, adding 0.1% following a narrow rally the previous week.
Furthermore, the SPDR Gold Trust exchange-traded fund GLD rallied by up to 0.2% having stayed still the previous week.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.