Gold futures were more than 2% higher on Monday after posting the best annual yield in a decade, with the trend for bullion coming as the dollar plunged to around nature 2 1 / 2-year.
Gold sellers attributed the rise in yellow metal to above the price of a psychologically round number at $ 1,900 to concerns about COVID-19 epidemics. The stimulus was linked to increases in hospitals and deaths, stocks with valuable value and expectations that fiat money is likely to see a further decline as governments spend more to limit the economic damage from the pathogen.
The U.S. saw at least 201,476 new COVID-19 cases on Sunday, and at least 1,353 people died, according to a New York Times regulator. In the past week, the U.S. has measured 212,893 cases per day, down 1% from the two-week average
“There appear to be a number of factors continuing to support gold in the coming months,” Hussein Sayed, FXTM’s chief market strategist, wrote in a note on Monday. “The pandemic will not go out of sight within a few weeks with the expectation of tighter locks as Covid’s cases continue to grow. So central banks need to keep policy loose by expanding their balance sheets. And as we start 2021 with very rich valuations in equity markets, gold is an essential asset in bundles, ”he wrote.
The dollar was trading 0.5% to around 89.528, near its lowest level since April of 2018, as measured by the U.S. DXY ICE Dollar Index,
yardstick of the buck against half a dozen silver units.
Against that background, there are futures for gold for delivery in February GCG21,
GOLD,
GC00,
raised $ 46.20 to trade at $ 1,941.40 an ounce, a gain of 2.5%.
Cash future for March SIH21 delivery,
SI00,
SI00,
meanwhile, it rose $ 1.07, or 4%, to trade at $ 27.485 an ounce.
The movements for gold and silver come after the commodities received their best annual gains since 2010, according to Dow Jones Market Data.
Gold rose about 0.5% last week, to 6.3% in December, and nearly 25% in 2020, with gains slowed to a rise of just 0.3% in the last three months of 2020.
Money times climbed more than 2% last week, an increase of 17% in December, and an annual increase of about 48% last year, supported by an increase of almost 13% in the fourth quarter.