Gold hits fresh 8-month high on China reopening hopes
NEW YORK (Jan 11) Gold futures touched a fresh 8-month high Wednesday as traders bet that China’s decision to drop COVID-19 restrictions on its economy would continue to boost prices of precious and industrial metals.
Price action- Gold futures for February delivery GC00, 0.23% GCG23, 0.23% rose by $5, or 0.3%, to $1,889 per ounce on Comex, according to FactSet data.
- Silver futures expiring in March SI00, 0.82% SIH23, 0.85% rose by 25 cents, or 1.1%, to $23.91 per ounce.
- Palladium for March PAH23, -1.06% advanced $8.70, or 0.5%, to $1,786 per ounce, while platinum for April PLJ23, 2.19% gained $15.30, or 1.4%, to $1,103 per ounce.
- March Copper HGH23, 1.66% rose by 3 cents to $4.11 per pound.
The reopening of China’s economy after the lifting of Covid related restrictions has helped push demand for industrial and precious metals higher and lifted gold to its highest price since last May.
The rise in gold prices has also been supported by a fall in the U.S. dollar against major currencies since last November as U.S. bond yields have eased.
Kitco’s Jim Wyckoff said “ideas of better economic growth in China are supporting metals prices on notions of increased demand” in a note to clients published Wednesday.
Looking ahead, whether or not the U.S. dollar continues to weaken will help to decide whether gold and silver prices have further to climb.
“Gold could be one of the biggest winners and we’d expect strength in commodities off the weaker dollar,” authors at Sevens Report Research said.
The ICE U.S. Dollar Index DXY, 0.11%, a gauge of the buck’s strength against its main rivals, rose 0.1%, to 103.35.
MarketWatch
