Gold gained on the back of the weakness of the US dollar. Other metals joined the rally, except for silver. For whatever reason, the white metal was hanging near the opening level.
The main theme of the trading session was the outlook for fiscal stimulus in the United States. Democrats released the first draft of the legislation that will comprise US President Joe Biden’s COVID-19 relief bill. Analysts expect that the bill will pass the Senate even without support from Republicans. The stimulus outlook resulted in a risk-on market sentiment that hurt the greenback. And thus, it helped gold as bullion usually trades inversely to the US currency. Additionally, experts explained the rally of gold prices by reflationary trade. The stimulus should result in a rise in consumer prices, and it will increase the appeal of gold as a hedge against inflation.
Another piece of news, which was fueling investors’ optimism and hurting the demand for the dollar in its role as a safe haven, was the reports about the effectiveness of coronavirus vaccines against the South African strain. While the AstraZeneca vaccine does not seem to be effective against the new strain, the Pfizer vaccine seems effective against both the South African and the UK variants.
Futures for delivery of gold in April rallied by $8 (0.44%) to $1,842.2 per troy ounce as of 8:19 GMT on COMEX today. March contract for silver was trading little changed at $27.57 per ounce. Spot price for platinum climbed by $19.77 (1.7%) to $1,181.51 per ounce, and palladium added $0.44 ($10.39) to its value, trading at $2,351.4 per ounce. Copper for delivery in March rose by $0.014 (0.38%) to $3.68 per pound.
If you have any questions and comments on commodities today, use the form below to reply.
© Commodity Inspector for Commodity Blog, 2021. | Permalink | No comment | Add to del.icio.us
Post tags:
Feed enhanced by Better Feed from Ozh
source
https://www.earnforex.com/commodities/gold-gains-on-us-stimulus-outlook-silver-fails-to-join-rally/
