Gold Breaks Above $1900 Per Ounce In Asia

Published on Dec 21, 2020 12:38

COMEX Gold futures soared sharply last week as the US dollar extended losses and commodities firmed up across the board. COMEX Gold futures added further to these gains and hit a five week high above $1900 per ounce today. Indian demand is likely to pick up with Covid-19 cases falling constantly and a vaccine roll-out due on the horizon very soon. India`s Gold imports stood at Rs 22433 crores in November 2020, up 6.63% compared to November 2019. Gold imports in April-November 2020 are down by 36.65% at Rs 91455 crore. The rise in imports is likely to keep the metal supported in near term.

US dollar index fell to around 32 month low last week after the US Fed kept size of bond purchases unchanged. The US central bank had said that it will buy at least $80 billion per month of Treasury bonds and $40 billion of agency mortgage-backed securities. Fed Chief Jerome Powell said empirical evidence shows there are disinflationary pressures across the globe keeping prices in check even with easy monetary policy, hinting that Fed will keep rates are record low levels for an extended period of time. COMEX Gold traders also eyed progress toward a massive US government spending bill and COVID-19 relief measures. Such actions are certain to push up US money supply in coming weeks, keeping Gold afloat.