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The gold futures closed higher due to the weakness of the dollar, but fell slightly on the monthly line.
Sep 1,2020 09:51CST
Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM: COMEX futures rose on Monday as the Federal Reserve (Federal Reserve / FED) dovish policy shift dragged the dollar to its lowest level in two years, but gold prices will fall for the first time in five months.

Monthly gold futures in COMEX12, the most actively traded, rose 3.70 U.S. dollars, or 0.2 percent, to settle at 1978.6 U.S. dollars an ounce at 13:30 new York time.

The monthly line of the contract fell by $7.3, or 0.37%.

JeffreySica, founder of CircleSquaredAlternativeInvestments, said: "the weakening of the dollar and expectations that the dollar will weaken further have led to some small gains in gold."

The dollar fell to its lowest level in more than two years, under pressure from the Fed's new average inflation target, which will allow interest rates to remain low, even if inflation rises slightly in the future.

Low interest rates usually support the price of gold, a hedge against inflation and currency depreciation.

JimWyckoff, a senior analyst at KitcoMetals, said in a report: "at present, risk aversion in global markets has decreased, with some restrictions on the rise of gold as a safe haven."

A measure of global stock markets is expected to rise for the fifth month in a row.

"there is a lot of concern that the [stock] market could rise too much and there could be some profit-taking, which could lead to a shift to gold," Sica said. "

Gold prices have risen about 29 per cent this year on the back of economic uncertainty caused by the epidemic and the upcoming US election.

For other precious metals, September silver futures rose 80. 4 cents to settle at $28.594 an ounce.

October platinum futures fell $2.10 to settle at $937.9 an ounce.

December palladium futures rose $47.80 to settle at $2279.3 an ounce.

In addition, COMEX12 copper for monthly delivery closed up 4. 2 cents at $3.0615 a pound.

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