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Gold reaches 6-month maximum as weaker greenback gives support
On Thursday, the yellow metal managed to surge, hitting a 6-month maximum due to the fact that a less-hawkish main US bank led to a weaker evergreen buck, thus underpinning the US dollar-denominated precious commodity.
On the Comex exchange, February delivery gold futures managed to jump by approximately 0.41% ending up with $1,261.50 per troy ounce. By the way, its intraday maximum of $1,265.65 turned out to be its highest value since June 26.
Besides this, the USD index, traditionally utilized to gauge the purchasing potential of the major American currency versus its main rivals, slipped by about 0.34% ending up with 96.15.
Although the Fed had rates lifted as anticipated on Wednesday, but policymakers tamed their expectations for lifts in 2019 narrowing them to just two versus the earlier three estimated in the September forecasts.
In general, financial markets are still downbeat, with odds sticking with 50% for just one rate lift at the end of 2018.
In addition to this, skittishness in equities also gave some support to the safe-haven precious metal because traders had assets reallocated.
A number of financial analysts pointed to the fact that the price $1,300 for gold wasn’t unreal, but just trickier.
It feels like the path to $1,300 is still alive for the yellow metal. However, the most popular precious commodity will have to count on the stock market getting affected by worries of extra rate lifts as well as the evergreen buck still lifeless.
As for other metals, silver futures declined by about 0.17% ending up with a reading of $14.793 a troy ounce by 11:25 AM ET.
As for palladium futures, they declined by 0.66% trading at $1,193.40 an ounce. Besides this, platinum futures dipped by 0.59% hitting $791.30.
Copper futures dived by 1.22% trading at $2.683 a pound.
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!