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The closing price of futures fell as concerns about the epidemic prompted investors to buy US dollars to avoid risk.
Sep 27,2020 08:17CST
translation
Source:COMEX
The content below was translated by Tencent automatically for reference.

SMM: COMEX futures closed lower on Friday as investors bought dollars to avoid risk because of concerns about the rising number of new cases and the uncertainty of the next round of stimulus plans in the United States.

Monthly gold futures in COMEX12, the most actively traded, fell 10. 6 U.S. dollars, or 0. 6 percent, to settle at $1866.30 an ounce at 13:30 new York time.

December silver futures fell 10. 3 cents to settle at $23.093 an ounce.

Platinum futures for October rose $4 to settle at $842.0 an ounce.

December palladium futures fell $4.70 to settle at $2222.20 an ounce.

In addition, the COMEX12 monthly copper contract rose 30 cents to settle at $2.9710 a pound.

EdwardMoya, a senior market analyst at OANDA, said: "both Republicans and Democrats agree on some stimulus measures, but they can't agree on the size, and this uncertainty is driving investors to the dollar."

The dollar rose on Friday, its biggest weekly gain since early April, as investors worried about a slowing economic recovery, rising European coronavirus infections, uncertainty about the US stimulus package and the upcoming US election.

A stronger dollar makes dollar-denominated commodities such as gold more expensive for buyers of other currencies.

"the main reason for the decline in gold prices is the strengthening of the dollar index that we have seen this week," NaeemAslam, chief market analyst at AvaTrade, said in a report.

Aslam said the Fed's "monetary policy confusion pushed up the dollar index, which in turn led to further weakness in gold prices."

"investors are not entirely satisfied with the idea that the Fed will keep interest rates low for three years, as some members of the Fed committee believe that interest rates are likely to rise before the Fed reaches its inflation target," he said. "

Democrats in the US House of Representatives are working on a $2.2 trillion novel coronavirus stimulus plan, which may be voted on next week, a leading congressman said on Thursday.

Fed officials stressed the importance of more fiscal stimulus in a speech this week at a time when investors were worried about another blow to the economy by the novel coronavirus epidemic.

The Dow and the S & P 500 still recorded their longest weekly decline in a year as concerns about a second round of outbreaks hit investors' risk appetite. Both the Dow and the S & P 500 recorded their fourth straight weekly decline, the longest weekly decline since August 2019. The Nasdaq closed higher this week after falling in the previous three weeks.

Concerns about the relationship between Vice President Biden (JoeBiden) and Trump (DonaldTrump) before the 2020 presidential election have also risen, which could set a floor for gold prices, UBS (UBS) analysts wrote in a research note.

Gold prices are likely to weaken further, but uncertainty over the US election is likely to intensify and the Fed will eventually need to expand its policy. As a result, we still have a positive view of gold. "

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