On Monday, the 20th of January 2020, at a thin-volume trading day with US markets were closed due to Martin Luther King Jr. Holiday, the precious safe-haven metal, gold surges to more than one-week high as investors appeared to be betting on to safer equities and commodities over the narratives of continued angsts in the Mideast alongside an ongoing impeachment hearing against the US President Donald Trump, while the precious palladium, widely used on exhaust panels in the automotive industry had extended its record setting rally amid a steep supply shortage.
In point of fact, investors across the globe had been on their heels on Monday (January 20th) market following a reinvigorated tension in the eastern part of Libya where the Libyan National Army of Khalifa Haftar had staged a military blockade on one of the pipelines which was also followed an attack on military training camp in Yemen by the Iran-backed Houthis over the weekend.
Meanwhile, adding investors were banking heavily on gold-backed ETFs (Exchange Trade Funds) and Central Banks were reportedly purchasing the precious metal at record rates, a Commerzbank analyst, Eugen Weinberg said on Monday’s (January 20th) market wrap up, “Investors are flocking towards gold in spite of a spike in equity markets, mostly because of long-term uncertainties like political insecurity, probable equity market volatility..., weak earnings expectations and ultra-low interest rates.
” Citing statistics, on Monday’s (January 20th) market closure, spot gold gained 0.23 per cent to $1560.77 an ounce, while analysts said a break above $1562 an ounce could witness spot gold futures’ prices hitting a seven-year-peak of $1,611 per ounce.
Besides, amid a steep supply shortage with no signs of recovery on sight, palladium extended its record setting rally to wind down Monday’s (January 20th) market 0.1 per cent higher at $2,482.24 an ounce after hitting a record high of $2,582.19 an ounce.