On Tuesday, global commodity market had sparkled with the precious safe-haven gold futures hitting a one-week high of $2,014.97, while silver climbed as much as 3.8 per cent as pandemic-spooked investors seemed to be betting heavily on the safe-haven assets likes of gold futures and the American currency had again pummelled to their two-year lows.
Aside from that, as market participants were awaiting August FOMC minutes which would unlikely to yield any kind of alternation in a sharply easing monetary policy, the American Dollar appeared to have lost its safe-haven bid and the US Dollar Index (DXY) measured against a basket of six currencies had faltered as much as 0.54 per cent to wind up the day at 92.30.
US Dollar collapsed to the lowest level since May ’18 as gold regains momentum
Citing statistics, on Tuesday’s commodity market closure, spot gold had wrapped up the day 0.9 per cent higher to $2,004.21 an ounce after hitting a one-week peak of $2,014.47 earlier in the session, while the US gold futures’ prices had reported a gain of 0.7 per cent to round off the day at $2,013.10.
Among other metals, platinum climbed 1.1 per cent to $960.39 an ounce, while palladium futures ended up the day slightly lower to $2,195.78 amid growing risks of a supply glut.
Meanwhile, since the American currency looks to be well-poised to enter into a correction course amid growing uncertainties over a second round of stimulus bill alongside a sharp decoupling in its relationship with China, expressing frets of further drawdown in US Dollar’s valuation which in effect would lift the gold futures higher, a chief market strategist at Blue Line Futures in Chicago, Phillip Streible wrote in a client note on the day’s commodity market closure, “People are watching the dollar index and its pretty alarming how its breaking down and we're seeing all these hard assets like gold and silver rising up in tandem.
We're going to run back up to the all-time highs, we had a healthy correction in the gold market, a lot of people who jumped on the bear side of the market are going to end up reversing course. ”