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Gold reaches 2-week maximums
The yellow metal is currently at an inflection point due to the fact that market participants are mulling over what's bigger to the financial market, an everlasting US-China trade clash, which could potentially knock bullion off its $1,300 perch or Brexit/Venezulea fears, which might end up in fresh 2019 maximums.
The spot price of the number one precious commodity as well as futures of gold reached two-week maximums on Friday because a string of dismal economic data as well as subdued inflation backed the Fed’s stance of being patient with future rate lifts.
Some financial analysts pointed out that the yellow metal keeps ignoring firm stocks and the greenback.
Spot gold contracts managed to ascend by 0.5% being worth $1,319.31 per ounce.
Besides this, on the Comex exchange, April delivery gold futures ascended by 0.7% ending up with $1,322.95 per ounce.
In general, gold has leapt over 12% since hitting more than 1-1/2-year minimums in mid-August, mostly on expectations for a pause in Fed rate lifts. However, the yellow metal’s run-up has also lost steam since January when the spot price hit $1,365.61 and futures demonstrated $1,331.10.
On Friday, Wall Street managed to tack on because negotiators on both sides of the trade negotiations between American and China reported decent progress in Beijing, telling that talks would resume in Washington next week.
Global commodities company Trafigura has made up its mind to cease trading crude with Venezuela because of American sanctions on the OPEC nation's energy sector.
Palladium futures managed to rally by up to 1.6% being worth $1,408.10 per ounce.
As for silver futures, they soared by 1.4% being worth $15.74 per ounce.
Besides this, platinum futures gained 2.3% demonstrating $807.20 per ounce.
Copper futures jumped by 1.2% hitting $2.81 per pound.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
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.