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In trading on Monday (30), gold futures prices fell, ending the month of uncomfortable gold. November marked the lowest closing price for gold prices since July, with a monthly drop of almost 6%.
- The price of gold futures for February delivery fell US $ 7.20 or 0.4% to close at US $ 1,780.90 an ounce. (This is the most active contract to negotiate)
February gold futures prices fell more than 4% last week, marking the biggest weekly decline since September 25. Monday’s price hit the lowest closing price since July 1.
According to Dow Jones market data, gold futures fell 5.6% in November and were more than 1% lower than the 200-day MA of $ 1806.15.
As the positive development of vaccines has sparked investor confidence, the market has rekindled enthusiasm for risky assets such as stocks, prompting the withdrawal of funds from safe-haven assets, leading to caused a drop in gold.
Moderna (MRNA-US) released the latest news on the potential efficacy of the new coronavirus vaccine on Monday, saying its experimental drug showed 94.1% effectiveness in the final trial and plans to apply for approval of emergency use to the US FDA on Monday. With permission, the new coronavirus vaccine will be available to front-line workers in the coming weeks.
The Zaner Metals analysis report noted that “gold and silver traders obviously continue to ignore the current epidemic situation, but have high expectations for the vaccine, because the price of gold continues to fall dramatically while the number of new cases continues. increasing”.
“What’s more, gold and silver continue to decline despite the new lower break point in the US dollar.”
A weaker US dollar generally supports the purchase of US dollar-denominated gold, but positive news about vaccines weighed on precious metals. The ICE dollar index fell to 91,506 on Monday, the lowest level since April 2018, and has fallen about 2.3% this month. It rose to 91,884 early in the session.
ThinkMarkets market analyst Fawad Razaqzada wrote in a research report on Monday that even though US stocks started falling this week, gold still fell. However, due to the weakness of the US dollar, the fall in gold may be blocked near this stage, and government bond yields also showed a moderate trend. This point will also boost the purchase of gold.
The yield on the 10-year bond is 0.84%, and a drop in the bond yield has traditionally increased the buying interest on non-performing gold.
“Furthermore, the yield on public debt has stopped rising because investors understand that the road to economic recovery will be quite long and bumpy, even though the public is optimistic about the vaccine and hopes to return to normal life.”
- March silver futures prices fell 5 cents, or 0.2%, to settle at $ 22.593 an ounce. (The most active contract for transactions)
Under the most active contract, silver posted its biggest weekly decline at the end of September last week, falling 5.1% this month.
Trade in other metallic raw materials
- Copper futures prices for March delivery rose 0.6% to $ 3.438 a pound, up 12.6% this month.
Zaner Metals analysts said: “Despite the weakness of the stock market and the resurgence of tensions in China and Australia, the copper market remains a surprise for the metal and most of the commodity markets, and prices keep rising. “
“Copper prices continue to rise due to strong demand in China and total global supply remains tight.”
- The price of platinum futures for January delivery rose 0.1% to close at $ 965.90 an ounce, up nearly 13.9% this month.
- Palladium futures for March delivery fell 1.4% to close at $ 2405.90 a pound, an 8% increase this month.
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