Gold Breaks Well Above $1900 Mark

Published on Jan 04, 2021 12:25

Gold jumped today, breaking well above $1900 per ounce. The yellow metal stayed well supported in last week as a relentless drop in the US dollar index kept the overall undertone supportive for the commodity. The US dollar index fell well under 90 mark and eased near a two and half year low of 89.50, keeping Gold broadly supported. COMEX Gold futures trade at $1927 per ounce, up 1.72% on the day. COMEX Gold ended the year with gains of around 20% after witnessing a historic run to fresh all-time highs near $2100 per pound.

The slide in the US dollar is keeping the currencies world under stress and there are signs that other central bankers will swing in the action to curb exchange rate volatility and ensure that their own currencies to do appreciate in a hurried manner. The ECB noted that it is monitoring the Euro exchange rate very closely. The Chinese central bank also vowed to keep monetary policy flexible. COMEX Gold futures has stayed broadly supported in last few days on reports that Britain has detected a new variant of the coronavirus in contacts of cases who have travelled from South Africa. This strain has now reportedly spread to a number of other countries. The global ETF buying seems to be steadying and local retail demand is also expected to see some uptick as spot prices linger around Rs 50000 per 10 grams.