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Gold reaches 6-month maximum
The yellow metal’s objective for $1,300 is still intact, although gold bugs don’t seem to hurry to get there, expecting equity markets to dive for the next big move up.
On Friday, on the Comex exchange, gold futures reached new six-month maximums hitting $1,284.55 a troy ounce.
However, instead of settling at those maximums in a move toward $1,300, the financial market gave back some, to conclude up 0.1% coming up with a reading of $1,280.65.
On Friday, the yellow metal’s retreat at the maximums came as American equities flitted between losses and profits.
Going into next year, financial analysts actually expect the price of the yellow metal to derive benefits from geopolitical risks as well as a weakening greenback. They actually expect physical demand for the yellow metal to go up exponentially because traders watch the American debt explode as well as the costs of entitlements getting absolutely out of hand as politicians keep neglecting all the warning signs.
Assessing the purchasing power of the American currency against its main rivals the USD index managed to hit a one-week minimum of 95.743.
For the yellow metal, it was the ninth positive settlement for 10 trading days, backed by the general decline in stocks against the backdrop of worries of a global downtime and also fears over the partial American government shutdown since the previous week. However, for the year, the yellow metal is still on track for a 2% dive.
On the Comex exchange, silver futures tacked on by 0.8% being worth $15.44 a troy ounce.
As for palladium futures, they sank by 0.8% reaching $1,185.20 per ounce. Platinum futures went down by 0.8% concluding at $789.80.
Meanwhile, copper futures managed to surge by 0.4% on the Comex exchange ending up with $2.68 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.