Gold futures are enjoying modest gains to kick off the trading week, buoyed by renewed
December gold futures tacked on $17.10, or 0.84%, to $2,045.10 per ounce at 16:10 GMT on Monday on the Comex division of the New York Mercantile Exchange. The yellow metal surged more than 2% last week, and it is now trading up more than 34.5%
Silver, the sister commodity to gold, topped $29 to start the trading week. September silver futures rallied $1.515, or 5.5%, to $29.055 per ounce. The white metal recorded a 15% weekly gain last week, despite the breather on Friday. So far this year, silver prices have skyrocketed 62.3%.
Metal commodities have been surging on a weaker greenback as the US dollar plunges on inflation fears and confidence in the broader financial markets. But the buck is edging up slightly on Monday. The US Dollar Index, which measures the greenback against a basket of currencies, rose 0.05% to 93.48, from an opening of 93.39. A stronger buck is bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.
Investors are looking at gold as a
Overall, investors are bullish on gold over inflation fears as governments and central banks attempt to rescue the economy in the aftermath of the coronavirus pandemic. The US government is now determining whether to spend $1 trillion or $3 trillion as part of its next round of stimulus and relief efforts, something that would further depress the dollar.
The Federal Reserve also intends to raise its inflation target beyond the 2% range and keep interest rates at historic lows, which would be a boon for precious metals.
In other metal markets, September copper futures surged $0.0745, or 2.67%, to $2.867 per pound. September platinum futures advanced $47.10, or 4.85%, to $1,017.50 an ounce. September palladium futures rallied $152.90, or 7.02%, to $2,329.50 per ounce.
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