Gold’s Best Month Since December

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Gold's Best Month Since December

Gold headed for best month since December, despite a slow week. Meanwhile, Palladium rose above $3,000 an ounce for the first time in early trading on concerns over a shortage of the metal used in autocatalysts.

Gold has upticked on traders buying the dips this morning after the yellow metal lost a few dollars an ounce on new economic data. Both personal income and spending for March rose in the U.S., 21.1% and 4.2%, respectively. The PCE Price Index rose 0.5% while economists had predicts a 0.3% rise.

Front-month gold futures dropped 0.3% Thursday to settle at $1,768.30 an ounce on Comex. The June contract is down 0.5% in the four days of the week. It has risen 3.1% this month after dropping in January, February and March. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. The June contract is currently up $2.60 an ounce to $1,770.90 and the DG spot price is $1,770.00.

Spot palladium gained 1.1% Thursday to $2,973.50 an ounce. It touched a record $2,981.99 an ounce Thursday. The metal has advanced 3.6% so far this week amid strong industrial demand. Palladium is up 13% this month after rising in February and March. It rallied 26% in 2020. Currently, the DG spot price is up $27.40 an ounce to $2991.00.

GDP expanded at a 6.4% annualized rate in the first quarter of the year, according to the Commerce Department’s preliminary estimate, compared with 4.3% in the fourth quarter. Personal consumption surged 10.7%, the second-fastest quarterly rate since the 1960s. Meanwhile, U.S. weekly initial jobless claims fell to another pandemic-era low in a report released Thursday.

Higher Treasury yields also made gold a less attractive option than other assets.

Investors are awaiting core inflation figures Friday and global manufacturing data next week for further signals on the state of the pandemic-hit economy.

The COVID-19 virus has killed almost 3.17 million people worldwide and sickened more than 150.5 million. About 21% of the cases — and 18% of the deaths — are in the U.S. The country has almost 32.3 million cases, more than any other nation. Meanwhile, is India reporting more than 300,000 new confirmed COVID-19 cases a day as global cases surge.

Front-month silver futures fell 0.1% Thursday to $26.09 an ounce on Comex. The July contract lost 0.1% in the first four days of the week. Silver is up 6.3% in April after dropping in February and March. It gained 47% in 2020. Currently, the July contract is up $0.130 an ounce to $26.215 and the DG spot price is $26.13.

Spot platinum declined 1.3% Thursday to $1,203.60 an ounce and retreated 2.6% in the first four days of the week. Platinum is up 0.7% in April after trading flat in March. The autocatalyst metal rose 11% in 2020. The DG spot price for platinum is currently up $21.00 an ounce to $1,221.00.

 

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.





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