Sliding US Dollar Boosts Gold

Published on Dec 02, 2020 12:21

COMEX Gold futures saw solid gains yesterday as familiar supportive factors like weakness in US dollar and easy US monetary policy boosted the metal. Prices jumped 2% to break above $1800 per ounce after the US Federal Reserve Chairman Jerome Powell said the outlook for the United States economy is extraordinarily uncertain as the rise in Covid-19 cases continues to take an economic toll on the country.

Powell said in prepared remarks for his testimony on Tuesday to the US Senate Committee on Banking, Housing, and Urban Affairs. That the rise in new Covid-19 cases, both in US and abroad, is concerning and could prove challenging for the next few months. A full economic recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities.

COMEX Gold futures are currently trading at $1812 per ounce, down 0.34% on the day. Gold is keeping an eye on sliding US dollar index which fell to lowest in two and half years yesterday, nearing 91 mark.