February gold futures rose $48.20, or 2.54%, to $1,943.30 per ounce, at 12:42 GMT on Monday on the New York Mercantile Exchange’s COMEX division. Gold prices are logged their most extensive yearly performance since 2010, graduating about last year.
Silver, the sister commodity to gold, is also pinning on the first trading session of 2021. March silver futures rose $1.223, or 4.63%, to $27.635 per ounce. The white metal also had its most immeasurable yearly gain in a decade as it jumped 50% in 2020.
The metals market was buoyed by a declining US dollar prompted by bullish world financial markets and an improving economy
The US Dollar Index (DXY) dropped 0.4% to 89.57, from an opening of 89.93. The index measures the dollar versus a basket of currencies. The DXY plunged almost 7% last year. A more moderate dollar is beneficial for commodities valued in dollars because it makes them more affordable for foreign investors.
Metal commodities are homing in on a two-month top on concerns that vital economies will require stricter restrictions as a new strain of the COVID-19 spreads at a fast rate. The latest modification is approximately 70% more contagious, and first studies say it is liable for a considerable number of the latest confirmed cases. The US has published issues in three states, while the UK estimates further lockdown measures to restrain the mutation.
Industry experts state that the other factor to support gold’s rise is that trend followers and technical traders have retreated to the market.
Politics could also be performing a factor in gold prices. The state of Georgia will be taking a special election on Tuesday. If the Democrats get both contests, they will manage the Senate, making it simpler to approve the left’s expansionary fiscal policy goals.
Could gold retest $2,000? It might depend on what opens in the first week of January.
In other metal commodities, February copper futures improved $0.083, or 2.36%, to $3.602 per pound. February platinum futures obtained $40.00, or 3.71%, to $1,119.20 per ounce. March palladium futures bound up $8.20, or 0.33%, to $2,462.00 an ounce.