Gold Records, Second Consecutive Win, Continues Rise After FOMC Minutes

Gold for delivery in June at Comex
GC00,
+ 0.53%
GCM20,
+ 0.53%
it increased $ 6.50, or 0.4%, to $ 1,752.10 an ounce. Prices were at $ 1,754.40 in ecommerce shortly after the FOMC minutes, which were released after the futures price settlement.

Meanwhile, Julio Plata
SIN20,
+ 1.19%
It rose 13 cents, or 0.7%, to end Wednesday at $ 18,031 an ounce, up 5.6% from the start of the week, according to data from FactSet, as part of the contract on more active.

A popular publicly traded silver fund, the iShares Silver Trust
SLV,
+ 1.11%,
It has increased 5.4% so far this week, while SPDR gold stocks
GLD
+ 0.28%

It rose 0.4% in transactions on Wednesday.

“We find that gold and silver are precious metals that continue to respond positively to stimulus from the central bank and the government, in particular [Federal Reserve Chairman Jerome Powell’s] Recent feedback on the use of all the tools at your disposal, “said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Powell said in testimony to the Senate Banking Committee on Tuesday that “We must be ready to do more and I would say yes, if necessary.”

“As hard currencies, gold and silver continue to be viewed as a store of value at a time when central bank stimulus packages are increasing supply and reducing the value of paper currencies,” said Cieszynski told MarketWatch.

Gold prices may soon reach a new record. Mark O’Byrne, director of research at GoldCore, sees “record gold prices in dollars in the coming weeks and summer.” Most active gold futures contracted record settlement of $ 1,891.90 on August 22, 2011, according to Dow Jones Market Data

“Gold has already reached unprecedented heights in euros, pounds and many other fiat currencies in the past few days and given the gloomy outlook for the economy and the fiscal position of the United States,” said O’Byrne.

Yellow metal prices fell on Monday after a Moderna report reported progress with an experimental vaccine for the new strain of coronavirus that has infected nearly five million people worldwide. However, a report by STAT News On Tuesday, he expressed doubts about the possible cure for the viral epidemic, bringing some momentum to the bars.

“Speculators are on the hook when they receive news of a coronavirus vaccine,” Naeem Aslam, chief market analyst at AvaTrade, wrote on Wednesday. “But when optimism wears off and reality becomes apparent, investors have no choice but to cover their bets,” he wrote.

Silver is also well given the “high investment demand” and “demand for safe bullion in anticipation of a severe recession,” said O’Byrne.

Among other metals, copper from July
HGN20
+ 1.63%
added 1.7% to $ 2.46 a pound. July
PAN20,

added 5.1% to $ 934.50 an ounce, while June palladium
PAM20,
+ 4.06%

It increased 4.1% to $ 2,159.40 an ounce.

In a report released this week, Metals Focus said it expects palladium to recover in the second half of this year because “the recovery in demand, spurred by the stimulus, restores market tension” . An average metal price for 2020 is estimated at $ 2,275, which would mark a 48% year-over-year increase.