Gold Futures Rise Sharply, Post 3-week Closing High
Gold prices moved up on Friday and the most active gold futures contract recorded a 3-week closing high, as optimism about a U.S. fiscal stimulus supported the commodity.
The dollar’s weakness amid hopes about a stimulus and data showing a notable expansion Chinese services sector activity in the month of September aided the yellow metal’s uptick.
The dollar index tumbled to 93.04, losing more than 0.6% from previous close.
Gold futures for December ended up $31.10 or about 1.6% at $1,926.20 an ounce. For the week, gold futures gained about 1%.
Silver futures for December moved up $1.232 or 5.2% to settle at $25.108 an ounce, while Copper futures for December settled at $3.0825 per pound, up $0.0405 or 1.3% from previous close.
According to reports, White House economic adviser Larry Kudlow said President Donald Trump had approved a revised stimulus package. Wall Street Journal’s Kate Davidson has reportedly tweeted that Treasury Secretary Steven Mnuchin would present House Speaker Nancy Pelosi with a $1.8 trillion counteroffer to the Democrats’ $2.2 trillion plan when they speak Friday.
The Caixin composite services Purchasing Managers’ Index for China rose to 54.8 in September from 54.0 in August, marking the fifth consecutive increase in service sector output. The expansion was underpinned by a sustained rise in total new business.
Investors are also preparing for Biden’s victory in presidential election and expect that he will offer bigger stimulus package after the election.