Gold rose today, Monday, to its highest in six weeks, supported by news that leaders of the US Congress have reached an agreement on an aid package linked to the Corona virus, while the appetite for higher-risk assets is undermined by closure measures in Britain, which increased support for the metal.
Spot gold rose 1.1 percent to 1900.57 dollars an ounce by 0512 GMT, after touching its highest levels since the ninth of November at 1901.38 dollars. US gold futures rose 0.9 percent to $ 1,904.8.
The $ 900 million package, which will be the second largest economic stimulus in the history of the United States, comes at a time when the pandemic accelerates, with the rate of infections in the country exceeding 214,000 people per day.
“Now and there is financial stimulus behind us, gold has enough momentum to close to more than $ 1900 by the end of the year and may even rise to $ 1925,” said Stephen Ins, senior global market analyst at Axi Financial Services.
And what provided support for gold, stocks fell after the British Minister of Health suggested that restrictions should continue to be tightened in London and southeast England for some time to confront a new strain of the Corona virus.
Related Post
As for other precious metals, silver rose 4.5 percent to $ 26.93 an ounce, after touching its highest level since December 18 at $ 27.02 earlier in the session.
Platinum rose 0.9 percent to $ 1,045.40, and palladium rose 0.7 percent to $ 2,376.13.
While oil prices fell about three percent, as a new fast-spreading strain of the Corona virus, which caused the closure of most parts of Britain, stoked fears about the slow recovery of fuel demand amid tightening restrictions in Europe.
Brent crude fell $ 1.54 a barrel, or 3 percent, to $ 50.72 a barrel by 0510 GMT, after increasing 1.5 percent and touching its highest levels since March on Friday.
U.S. West Texas Intermediate crude fell $ 1.42 a barrel, or 2.9 percent, to $ 47.68 a barrel, after it also rose 1.5 percent on Friday to its highest level since February.
“The oil market has taken a positive turn in the last month or so, ignoring negative factors amid optimism that large-scale distribution of the vaccine will revive global growth,” said Kazuhiko Saito, chief analyst at Fujitomi to Samsara in commodities. Of the virus. “
Adding to the pressure, Baker Hughes Energy Services said on Friday that the number of oil and gas rigs, an early indicator of future production, increased by eight to 346 in the week ending December 18, the highest level since May, as producers continue to return. To the fields with prices trading above $ 45 a barrel since November.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Saturday that global oil demand is still between six and seven million barrels per day below pre-crisis levels.
