Gold futures settled at another record high to close out the trading week and month as investors rush to safety amid global economic uncertainty. Gold prices have been soaring over the last month on a variety of factors, from a cratering US dollar to exploding COVID-19 cases in the US and around the world. With the yellow metal inches away from $2,000, how much higher can gold go?
December gold futures surged $45.60, or 2.35%, to $1,987.90 per ounce at 18:09 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold will enjoy a weekly gain of about 4.7% and a monthly spike of 11.2%.
Silver, the sister commodity to gold and considered the poor man’s gold, has also reignited its rally after a tepid pullback. September silver futures tacked on $0.843, or 3.61%, to $24.205 an ounce. The white metal will end the week 5.3% higher and will post a monthly increase of 33%. So far this year, silver prices are up 36%.
Although gold and silver possess an industrial use, the consensus on Wall Street is that investors are pouring into the precious metals as a store of value. With inflation fears on the horizon, traders are building their positions in gold and silver as a hedge against a depreciating currency and higher prices.
Bank of America reported that money managers transferred $3.9 billion into gold in the last week, the
As the greenback continues to weaken, gold is more affordable in global financial markets. The US Dollar Index, which measures the buck against a basket of currencies, advanced 0.33% to 93.33 on Friday. However, the index is down 1.2% this week and it endured a 4% loss in July. YTD, the index has slumped more than 3%, despite climbing as much as 4% earlier this year. A lower buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.
Market observers warn that the
In other metal commodities, September copper futures fell $0.0515, or 1.77%, to $2.8615 per pound. September platinum futures edged up $1.80, or 0.2%, to $914.40 per ounce. December palladium futures tumbled $2.60, or 0.12%, to $2,132.30 an ounce.
If you have any questions and comments on the commodities today, use the form below to reply.
SOURCE: Commodity Blog – Read entire story here.