On Monday, global commodity market had witnessed a sharp rise in the precious yellow metal’s futures’ prices, gaining as much as 2 per cent to hit thier two-month peaks in the first trading session of 2021, while palladium contracts hit their highest level since August 2016 and silver futures’ prices had climbed to three-month highs.
In point of fact, latest rallies in the precious metal futures’ prices were largely prodded over investors’ concerns that a $2.3 billion fiscal package passed in the US Senate later last year would likely to ramp up a raft of inflation fundamentals, which in combination with a multi-year low benchmark borrowing cost amid little rooms for upward momentums in the Wall Street, would depreciate the American currency further, eventually leading to an extended rally in the safe-haven gold contracts’ prices.
Precious metals jump as American Dollar plunges to a 2-1/2-year low
On top of that, in a near-term outlook, high-stake twin Senate runoffs in Georgia scheduled to take place on Tuesday, had lowered risk-appetites and buoyed up a safe-haven bid for the gold futures’ prices.
If truth is to be told, a dual victory in Georgia Senate runoffs would cement the President-elect Joe Biden’s control in both houses of US Congress, which in effect would make it easier for a Biden Administration to push for a number of transmuting policy changes such as a reform of corporate tax-incentives adopted during the earlier days of Trump Administration, leading to a further freefall in greenback’s valuation alongside an upswing in gold contracts’ safe-haven appetite.
Citing statistics, in the day’s commodity market round off, spot gold futures’ prices wrapped up the session 2.4 per cent higher to $1,943.13 per ounce, while the US gold futures surged 2.7 per cent to settle down at $1,946.60.
Among other precious metals, platinum futures’ prices rose to $1,127.82 an ounce, its highest level since August 2016, earlier in the day, however, pared gains in late-afternoon trading and winded down the session 0.4 per cent lower to $1,063.87.
Nonetheless, silver futures’ prices climbed 3.1 per cent to $27.17 per ounce, hitting a three-month peak. Meanwhile, referring to long-term consequences of Senate runoffs in Georgia, an analyst and founder of Circle Squared Alterative Investments, Jeffery Sica said, “The Senate election this week could turn out to be a major disruptive event so gold is rallying on that. ”