[ad_1]
In trading on Tuesday (1st), the US dollar fell sharply, supporting the rally in gold futures prices from a 5-month low, marking the biggest one-day gain in 3 weeks.
Jeff Wright, executive vice president of GoldMining Inc., said that the gold market is like Black Friday / Online Shopping Monday, with a “buy at a bargain price” phenomenon. At the same time, ISM data also brings some momentum, and the US Senate is possible to make concessions on the new $ 908 billion corona epidemic relief proposal, which also provides support.
The ISM manufacturing index fell to 57.5% in November from a 21-month high of 59.3% the previous month.
“Starting in November, it will take some time to repair the gold frustration, but it is the first step back to more than $ 1,800 so that the bulls can take control again.”
- The price of gold futures for February delivery rose US $ 38, or 2.1%, to US $ 1,818.90 an ounce.
According to FactSet data, this is the largest single day rise and rise in gold futures prices since November 5.
On Monday, gold fell 0.4% to $ 1,780.90, hitting its lowest closing price since July 1. It fell 5.6% in November.
UBS analysts in an investigative report on Tuesday noted that “due to the rapid progress of the new crown vaccine than expected, gold has been sold, and the Fed’s next step is unclear and the data improving macroeconomics has also affected “.
They expect that in the first quarter of 2021, real interest rates and the US dollar will fall further, and the price of gold will peak by then, but also believe that “due to positive economic forces, there is less potential for gold”. UBS analysts The forecast for the first quarter of the price of gold next year will be reduced from $ 2,000 per ounce to $ 1950.
- March silver futures prices rose US $ 1.50, or 6.6%, to close at US $ 24.09 an ounce. (The most active commercial contract) The previous trading day fell 0.2% and November fell 5.1%.
Some traders believe that in the context of the development of the new crown vaccine, the price of gold has a “technical collapse” and naturally fades, which may pave the way to restore the bullish momentum of gold.
Peter Cardillo, chief market economist at Spartan Capital Securities, said on Tuesday: “The gold sell-off led to a technical collapse, and we believe this is already developing and running out. However, although we are not sure whether the price will retest the recent lows, I think the worst period of this recession is over. “
ThinkMarkets market analyst Fawad Razaqzada mentioned that due to the continued rise in the euro, the US dollar index is currently near recent lows, and the weakness of the US dollar makes US dollar-denominated commodities more attractive to foreign buyers.
The ICE dollar index fell 0.6% to 91.293 on Tuesday, a year-to-date drop of about 5%.
“If the dollar continues to weaken, it should help support the price of precious metals, even if bond yields have recovered slightly,” Razaqzada said.
“For silver, rising government bond yields won’t bring much resistance, because silver is more risk sensitive than gold. As the stock market and other risky assets rise, silver should perform better than gold due to copper and silver. Demand for this type of industrial metal is also expected to increase. “
Trade in other metallic raw materials
- Copper futures prices for March delivery rose 1.4% to settle at $ 3.485 a pound, which was the highest closing price since March 2013, according to the most active contract.
- The price of platinum futures for January delivery rose 3.9% to close at $ 1,003.90 an ounce, surpassing $ 1,000 for the first time since August.
- Palladium futures for March delivery rose 1% to close at $ 2,429.70 a pound.
[ad_2]
