SMM: COMEX gold futures rose 1% on Monday as the dollar weakened and expectations that the US Federal Reserve (FED/ Fed) would maintain its dovish monetary policy this week further enhanced the attractiveness of safe-haven gold.
Monthly gold futures in COMEX12, the most actively traded, rose 15.8 U.S. dollars, or 0.8 percent, to settle at 1963.7 U.S. dollars an ounce at 13:30 new York time.
December silver futures rose 49.8 cents to settle at $27.355 an ounce.
Platinum futures for October rose $19.10 to settle at $958.7 an ounce.
December palladium futures closed down $6.40 at $2324.40 an ounce.
In addition, COMEX12 copper for monthly delivery rose 2.85 cents to settle at $3.0680 a pound.
"Gold is rising due to considerable pressure on the dollar," said PhillipStreible, chief market strategist at BlueLineFutures. We have also seen Finance Minister Nuchin hinting that they hope to reach some form of fiscal stimulus agreement, which will further weaken the dollar. "
The dollar index fell 0.3%, making gold more attractive to investors holding other currencies.
Us Treasury Secretary Nuchin says it is still possible to reach an agreement with Congress to provide more federal aid related to the epidemic.
Gold prices have risen 29 per cent this year, driven by massive stimulus measures by central banks around the world to combat the impact of the coronavirus pandemic.
Investors are closely watching the policy decision to be announced by the Federal Reserve on Wednesday. This week's Fed meeting will be the first since Chairman Colin Powell announced policy changes; the Fed has increased its tolerance for inflation, in effect promising to keep interest rates low for a longer period of time.
Market participants are still waiting for policy decisions from the Bank of Japan and the Bank of England on Thursday.
The UK stalled the Brexit trade talks last week after it made it clear that it planned to violate part of the Brexit agreement signed at the time of Brexit in January, which would violate international law.
The House of Commons will debate and vote on the internal market bill on Monday.
The EU said those who violated the agreement could not be trusted, saying that if the bill could not be cancelled, it would not reach a trade agreement with the UK when the latter left the customs union and the single market at the end of 2020.
JeffreyChristian, a managing shareholder of CPMGroup, said gold would continue to rise, driven by political uncertainty in the US, Brexit and weak global economic conditions.
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