Congratulations! Gold has just opened a new era... or, rather, reopened...
Yellow metal tops $1,300
On Friday, gold futures managed to shot up above $1,300 an ounce, thus finding themselves on track for a weekly leap because the evergreen buck rebounded and market participants closely watched geopolitical turmoil as well as global surge fears.
Soaring gold prices actually reflect political uncertainty in the euro zone, America, Venezuela as well as pockets of South America, not to mention China-US trade negotiations, as some experts pointed out.
On the Comex exchange, February delivery gold futures GCG9 managed to ascend by 1.42% being worth $1,302.70. Tor the week the April contract tacked on by 1.1%. By the way, it hasn’t concluded above $1,300 since January 3.
Besides this, March delivery silver futures SIH9 jumped by 2.4% ending up with a reading of $15.665 an ounce. For the week they surged by 1.7%.
The evergreen buck has declined ahead of next week’s Fed gathering in the face of soaring hopes that the major US bank will once again draw attention to the necessity to have its interest-rate lifting cycle paused.
A traditional indicator of the purchasing power of the greenback versus its primary rivals, the USD index dived by 0.7%. Eventually, a weaker greenback can back dollar-priced commodities, making them cheaper to folks holding other currencies.
As for other metals, March delivery palladium futures PAH9 managed to ascend by 1.3% being worth $1,297.60 an ounce. Besides this, April delivery platinum futures PLJ9 tacked on by 1.6% ending up with $817.70 an ounce and soaring by up to 1.9% for the week.
Moreover, March delivery copper futures HGH9 went up by 2.4% trading at $2.708 a pound, although looked at a 0.4% weekly dive.
As for the SDPR Gold Shares GLD, they jumped by 1%, braced for a 1.1% weekly ascend. Moreover, the VanEck Vectors Gold Miners ETFGDX rallied by 2.7%.
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.