Gold Futures Settle At Over 2-week High As Dollar Slips
Gold prices moved higher on Monday as the dollar weakened amid fresh optimism about a U.S. coronavirus relief package.
Rising worries about rapidly growing new coronavirus cases in the U.S. and several other countries across the globe boosted the demand for the safe-haven asset.
The dollar index, which dropped to 93.37 around mid-morning, was last seen at 93.51, down 0.36% from previous close.
Gold futures for December ended higher by $12.50 or about 0.7% at $1,920.10 an ounce, the highest close since September 18.
Silver futures for December ended up $0.531 or 2.2% at $24.560 an ounce, while Copper futures for December settled at $2.9630 per pound, down $0.0140 or 0.5% from previous close.
Investors are pinning hopes that America will pass a new stimulus bill sooner rather than later. Trump tweeted over the weekend that the U.S. “wants and needs stimulus”.
House Speaker Nancy Pelosi told CBS in an interview that progress was being made on coronavirus relief legislation to respond to the economic fallout from the coronavirus pandemic.
Separately, Politico reported that Treasury Secretary Steven Mnuchin and Pelosi consulted Federal Reserve Chair Jerome Powell about their stimulus plan talks.
In economic news, activity in the U.S. service sector unexpectedly grew at a faster rate in the month of September, according to a report released by the Institute for Supply Management.
The ISM said its services PMI rose inched up 57.8 in September from 56.9 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 56.3.