Gold Prices Surge Amidst Economic Forecasts and Soft Dollar
Gold prices increased significantly as a softer U.S. dollar provided an opportunity for overseas buyers. With investors anticipating crucial U.S. economic data, gold's attraction persists, especially with China's continued purchases. Other precious metals like silver, platinum, and palladium also experienced gains, driven by varying market dynamics and expectations.
Gold prices experienced a notable jump on Monday, propelled by a weakening dollar as investors prepared for a week dominated by key U.S. economic data releases. The indicators are set to potentially influence the Federal Reserve's monetary policy decisions. Spot gold rose 2.1%, reaching $5,063.88 per ounce by 11:12 a.m. ET, building on a previous 4% rally.
In addition, U.S. gold futures for April delivery increased by 2.2% to $5,087.10 per ounce. The falling U.S. dollar, which dropped 0.8%, made gold priced in dollars cheaper for international buyers. Bart Melek, TD Securities' global head of commodity strategy, noted that weak economic data expectations, especially concerning labor, were impacting gold prices.
Elsewhere in the precious metals market, spot silver climbed 5.8% to $82.49 per ounce. Platinum and palladium, both used in internal combustion vehicles, saw increased demand despite the rise of electric vehicles. However, China's continuing gold acquisition spree for its 15th consecutive month injected psychological momentum into the market.
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