Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Hits Two-Month High as Dollar, Real Yields Face Pressure

Published 01/06/2021, 08:13 PM
Updated 01/06/2021, 08:36 PM
© Reuters.  Gold Hits Two-Month High as Dollar, Real Yields Face Pressure

© Reuters. Gold Hits Two-Month High as Dollar, Real Yields Face Pressure

(Bloomberg) -- Gold pushed above $1,900 an ounce to hit the highest level in almost two months, aided by a weaker dollar, after posting the biggest annual advance in a decade. Silver also surged on the first full trading day of the new year, while platinum jumped to its priciest since 2016.

Bullion is rallying as a gauge of the U.S. currency languishes near the lowest level since 2018. The gains in the traditional haven come even as U.S. and global stocks are at all-time highs amid expectations that widespread vaccine distribution in 2021, further central bank support, and government aid will reignite economic growth and underpin corporate profits.

Spot gold climbed as much as 1% to $1,917.05 an ounce, the highest since Nov. 9, and traded at $1,916.53 at 9:10 a.m. in Singapore as the Bloomberg Dollar Spot Index fell 0.1%. In 2020, the precious metal rose 25%. Silver advanced as much as 2.8%, and platinum hit $1,085.31 an ounce, the highest since September 2016.

Gold’s recent gains have also been aided by renewed declines in U.S. real yields, which boost the precious metal’s allure. Real yields -- the difference between nominal benchmark bond yields and the rate of inflation -- were at -1.092% on Friday. That’s near last year’s nadir.

On the coronavirus front, U.S. daily cases soared to a record of nearly 300,000 after the holidays, while global cases hit 85 million. The U.S. vaccine rollout is picking up speed and could be fully on track within a week or so, said Anthony Fauci, the nation’s top infectious disease expert. U.K. Prime Minister Boris Johnson said tougher lockdown measures in England, including school closures, will probably be needed as cases of a new virus variant surge.

©2021 Bloomberg L.P.

Latest comments

feburary pop maybe
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.