Gold prices surged on Thursday as the dollar fell to a 2-1 / 2-year low while investors optimistic about the ultimate success in negotiating a fresh US coronavirus support package.
Spot gold rose 0.3% to $ 1,837.10 an ounce at 1014 GMT, up from $ 1,843.11 since November 23. US gold futures gained 0.6% to close at $ 1,840.70.
Julius Baer analyst Carsten Menke said, “The dollar is losing ground especially versus the euro, which is driving up gold prices.”
“This is not your specific safe haven demand because there is broad-based economic optimism at the moment concerning the vaccine situation.”
The optimism over hope and vaccine progress of an incentive deal pushed the US dollar to its lowest level since April 2018, making bullion cheaper for holders of other currencies.
Although US lawmakers were unable to agree on a fresh relief package, preliminary indications suggest that the $ 908 billion bipartisan proposal could gain traction as a negotiating tool.
On Wednesday, Federal Reserve Chairman Jerome Powell reiterated his plea for Congress that unless a vaccine has allowed commerce to resume.
Given the level of monetary dispute, gold may rise to $ 1,875- $ 1,880 in December, said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.
Gold, symbolized as a hedge against inflation and debilitating currency, rose 21% this year, largely helping to mitigate the effects of the epidemic by benefiting from unprecedented stimulus.
Elsewhere, platinum hit a peak of nearly eleven months at a rate of $ 1,027.75 per ounce. It was up 1.1% at $ 1,025.66.
MKS PAMP said in a note that Platinum has consolidated above $ 1,000 on positive global growth sentiment, with an initial target of $ 1,040 as an ETF (exchange-traded fund).
Palladium rose 0.1% to $ 2,402.54 per ounce, while silver was flat at $ 24.10.
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