Precious metals are rallying to start the trading week as the US dollar tumbles and investors renew their concerns over geopolitical risks. With gold retreating from a
December gold futures surged $12.60, or 1.00%, to $1,281.80 per ounce at 16:23 GMT on Monday. The yellow metal had settled at its lowest level since the beginning of August on Friday. Gold prices also recorded a 0.2% weekly gain last week.
Silver, the sister commodity to gold, is climbing higher to kick off the trading week. December silver futures rose $0.40, or 2.38%, to $17.23 an ounce. The white metal also reported a weekly gain of 0.5% last week.
The precious metals are benefiting from a lower US dollar as the greenback slipped 0.12%.
The dollar’s losses are surprising investors. Despite strong data in the service sector and a modest labor report, the greenback is sliding, which is good for
Analysts are still expecting the Federal Reserve to move ahead with raising interest rates at next month’s Federal Open Market Committee (FOMC) policy meeting. Prior to his foreign trip, President Donald Trump announced that he will formally nominate Fed Governor Jerome Powell to lead the US central bank.
President Trump is in Japan on Monday as part of his 12-day Asia tour. He is expected to discuss North Korea with Japanese Prime Minister Shinzo Abe, which could rejuvenate geopolitical tensions with Pyongyang, and this could be a boon for the
According to the US Commodity Futures Trading Commission (CFTC), hedge funds and money managers slashed their net long positions in gold for the seventh consecutive week.
Other metals are also rallying. December copper futures jumped $0.04, or 1.28%, to $3.157 per pound. December platinum futures spiked $13.70, or 1.49%, to $935.60 an ounce. December palladium futures rose $6.45, or 0.65%, to $997.95 per ounce.
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