PRECIOUS-Gold hits 8-week peak as pandemic remains untamed

  • Reuters
  • Commodities News
PRECIOUS-Gold hits 8-week peak as pandemic remains untamed
Credit: © Reuters.

Jan 4 (Reuters) - Gold prices climbed to their highest in eight weeks on Monday, holding above $1,900, as global COVID-19 cases spiked and countries pushed for more lockdowns despite vaccine rollouts.

FUNDAMENTALS

* Spot gold XAU= rose 0.8% to $1,912.71 per ounce by 0102 GMT, its highest since Nov. 9, while U.S. gold futures GCv1 climbed 1.1% to $1,916.40.

* The dollar index .DXY remained weaker against rivals on Monday, making gold cheaper for holders of other currencies. USD/

* Global coronavirus cases continued to climb, with British Prime Minister Boris Johnson hinting at tougher lockdown restrictions, while Japan considered declaring a state of emergency for capital Tokyo and surrounding areas. Investor focus was also on Tuesday's Georgia runoff elections that will decide the control of the U.S. Senate, and with it, the likely fate of President-elect Joe Biden's legislative agenda. The U.S. Senate ended a push by Democrats to increase COVID-19 financial relief checks from $600 to $2,000, a change sought by President Donald Trump, after the effort was blocked by Republicans. Britain will become the first country to roll out the low-cost and easily transportable AstraZeneca AZN.L and Oxford University COVID-19 vaccine on Monday. The U.S. Federal Reserve will release the minutes from their latest policy meeting on Wednesday.

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.08% to 1,170.74 tonnes on Thursday. GOL/ETF

* Physical gold demand remained largely muted across top Asian hubs last week as holidays kept buyers at bay. Silver XAG= gained 2.4% to $26.98 an ounce. Platinum XPT= gained 0.6% to $1,075.15 and palladium XPD= rose 0.6% at $2,461.95.

DATA/EVENTS (GMT, Dec) 0145 China

Caixin Mfg PMI Final 0850 France Markit Mfg PMI 0855 Germany Markit/BME Mfg PMI 0900 EU

Markit Mfg Final PMI 0930 UK

Markit/CIPS Mfg PMI Final 1445 US

Markit Mfg Final PMI

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  • Brad Smith @Brad Smith
    "1,170.74 tonnes"Sumita Layek, can you provide any verifiable evidence to support your claim here? How reliable are GLD's holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone means GLD is nothing more than paper.
    Like 0
    • Brad Smith @Brad Smith
      GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund.
      Like 0
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