Thu, March 28, 2024

GOLD RESTORES ON U.S. FISCAL STIMULUS OPTIMISM

Gold

 Gold is rallying principally on reiterated fiscal incentive and relief expectations, triggering inflation concerns. But a strengthening US dollar put a cover on the metals market.

 

 February gold futures rose $14.80, or 0.81%, to $1,850.10 per ounce at 15:55 GMT on Monday on the New York Mercantile Exchange’s COMEX division. Gold prices are coming off a weekly decline of around 2.5%, closing the first trading week of 2021 under the $1,900 level.

 

Silver, the relative commodity to gold, is rising on Monday after slipping approximately 7% last week. March silver futures rose $0.633, or 2.57%, to $25.27 an ounce.

 

Although Washington has still flowed in political turmoil as Democrats try to blame President Donald Trump for a second time, investors concentrate on President-Elect Joe Biden and his trifecta of power. Traders are confident that his majority control can point to more stimulus spending as the US economy wheels from the COVID-19 epidemic.

 

Following last week’s unfortunate December jobs report, the financial markets are craving for more federal government relief

With the Democrats asking the final coronavirus legislation a down payment, legislators will probably put more spending measures.

 

At the same time, investors are also afraid of the inflationary influence of this deficit-financed spending. There are already indications that inflation is increasing, with food prices climbing to their highest levels in six years.

 

A strengthening dollar pressed on gold prices. The US Dollar Index, which gauges the dollar versus a basket of currencies, elevated 0.38% to 90.44, from an opening of 90.03. A stronger dollar is dangerous for dollar-pegged commodities because it addresses it more costly for foreign investors.

 

On the data front, as stated by the Federal Reserve Bank of New York, consumer inflation expectations increased to 3% in December, up from 2.96% in November.

 

Overall, the resurgence in coronavirus cases extends to influence the wider economy, with the US equating more than 250,000 new infections per day. This has occurred in more states forcing lockdowns, and there are worries that a Biden administration would establish federal mandates to restrict the spread of respiratory disease.

 

In other metal markets, March copper futures slid $0.117, or 3.18%, to $3.5565 per pound. March platinum futures crashed $34.10, or 3.18%, to $1,037.20 an ounce. March palladium futures rised up $5.50, or 0.23%, to $2,370.50 per ounce.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in