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Latest movements in the price of gold in the world
According to the Reuters, gold prices rose more than 1% on Thursday (December 17) as the dollar fell and the US Federal Reserve (Fed) pledged to provide more cash to the economy along with continuing to keep prices low. interest rates.
At the close of the session on December 17, spot gold rose 1.1% to $ 1.885 / ounce at 2:13 PM EST. The United States gold futures contract rose 1.7% to $ 1,890.
“The combination of additional economic stimulus and additional purchases of bonds and asset purchases from the Fed clearly drives up gold and silver prices,” said David Meger, director of metals trading at High Ridge Futures. go higher ”.
An additional stimulus bailout is weighing on the dollar as more money is pumped into the offering, Meger added.
Lawmakers sought to implement the $ 900 billion COVID-19 aid bill with a Friday deadline to halt the government shutdown, boost the price of gold and drive the dollar lower.
With interest rates close to zero, the Fed has announced that it will continue to pump cash into financial markets until the US economy recovers.
“The gold market seems to focus solely on the fact that there is an economic stimulus agreement and we are close to it,” said Bob Haberkorn, senior market strategist at RJO Futures.
Bullion, considered a hedge against inflation, has grown more than 24% so far in 2020 amid unprecedented global economic stimulus launched. It raised concerns about the recovery of the US economy.
The number of Americans filing for unemployment benefits for the first time unexpectedly rose last week when the COVID-19 infection hit businesses.
The Bank of England put its stimulus program on hold while it awaited the outcome of negotiations on a trade agreement between the UK and the European Union.
In the other metals market, silver was up 2.6% to $ 25 / ounce. Platinum is up 0.8% to $ 1,042 and palladium 0.2% to $ 2,331.
