On Wednesday, the precious yellow metal gold futures’ prices soared as much as 1 per cent to $1,817.71 per ounce over a growing safe haven demand, as investors appeared to be seeking safety on safe haven gold amid a pandemic-led mayhem in the Unites States which rekindled possibilities of an re-inclination of the forced lockdown measures.
In point of fact, as the gold futures’ prices had surged past the psychological resistance level of $1,800 level on Wednesday, marking up its highest level since the September of 2011, market participants’ worry over the fiscal fallouts of the pandemic alongside Central Banks’ measures to pour tens of billions of Dollars into the economies in order to cushion up the fiscal blows from the ongoing pandemic outbreak appeared to have played a pivotal role behind Wednesday’s rally of the precious metal.
Constant injections of liquidity weaken US Dollar, bolster safe-haven yellow metal, say analysts
Citing statistics, on Wednesday’s commodity market closing bell, the spot gold gained 0.9 per cent to $1,811.01 an ounce, while the US gold futures’ had wrapped up the day 0.6 per cent higher to $1,820.60, less than $100 below the gold futures’ prices all time high of $1,920.30 reached on September 19, 2011.
Among other precious metals, silver futures’ prices climbed 2.1 per cent to $18.68 an ounce on the day’s market wind down, while palladium added 0.1 per cent to $1,918.05 per ounce and the platinum futures’ prices ended down the day 0.7 per cent higher to $841.54 an ounce.
Meanwhile, adding that a persistent inflow of pandemic-related aid alongside a rise in influx of gold-backed ETF (Exchange Traded Funds) alongside other investments had been acting as a key catalyst behind the latest round of upsurge in gold futures’ prices, a Director of metals trading at High Ridge Futures, David Meger said on Wednesday’s commodity market closure, “The pillars of support are the fiscal and monetary stimulus.
The constant injection of liquidity into the market continues to be the most prominent positive factor, as the dollar has been weakening and supporting commodity prices, but more specifically gold and silver. ”