Gold Futures Bounce as US Dollar Stumbles
Gold futures experienced a significant rebound on Thursday as the US dollar suffered a decline and oil prices surged. The December gold contract rose $7.60 to settle at $937.30 an ounce on the Comex division of the New York Mercantile Exchange. This rally can be attributed to the weakening dollar, which often prompts investors to buy gold as a hedge against currency weakness. Additionally, the advance in oil prices can also contribute to gains in gold, as funds often purchase commodities in baskets and look to oil for direction.
Key Takeaways:
- Gold futures rose $7.60 to settle at $937.30 an ounce on the Comex division of the New York Mercantile Exchange, marking a significant rebound from previous declines.
- The weakening US dollar was the primary driving force behind the gold price increase, as investors buy gold as a hedge against currency weakness.
- The advance in oil prices also contributed to the gains in gold, as funds often purchase commodities in baskets and look to oil for direction.
- Silver futures rose 22.7 cents to settle at $13.485 an ounce, also benefiting from the weakening dollar and general optimism from the automotive sector.
- Platinum and palladium futures also experienced gains due to the weakening dollar and optimism from the automotive sector, with Nymex October platinum rising $16.80 to settle at $1,189 an ounce and September palladium rising $3.85 to settle at $259.35 an ounce.
Statistics:
- December gold contract rose $7.60 to settle at $937.30 an ounce.
- Comex September silver rose 22.7 cents to settle at $13.485 an ounce.
- Nymex October platinum gained $16.80 to settle at $1,189 an ounce.
- September palladium on the exchange rose $3.85 to settle at $259.35 an ounce.
Sources:
- Dow Jones Commodities News via Comtex
- LOGIC Advisors
- CPM Group
- Archer Financial Services
- Dow Jones Newswires