Gold Futures Keep Rallying

Gold futures sustained their bullish rally for the consecutive second day on Tuesday on its safe haven status. Gold futures contract for December delivery gained 0.2 percent or $2.60 to settle at $1,713.40 per ounce on Comex trading of the New York Mercantile Exchange. However some of the analysts were of the opinion that investors were still hesitant due to low liquidity and in the market.

Analysts from VTB Capital said in a statement, “The trade remains extremely choppy while intraday volatility is also exaggerated in thin trading volumes … despite gold’s still fairly strong correlation to the broader equity and commodity market, market participants remain reluctant to liquidate in large volumes amid ongoing uncertainty.”

The slight appreciation in gold futures was also attributed towards the weakening greenback as the lower US dollar always benefits commodities making precious metals cheaper for investors holding other currencies. The dollar index DXY which tracks the greenback’s movement against its counterparts fell to 79.021 on Tuesday as compared to 79.236 on Monday’s North American trading session.

Among other commodities, silver futures contract for December delivery fell 1 percent or $0.31 to settle at $31.85 per ounce. Copper futures contract for same month delivery gained 0.5 percent or $0.02 to $3.38 per pound.

Platinum for January delivery advanced 0.1 percent or $1.20 per ounce to $1,540.70 per ounce while palladium futures for March delivery gained 0.5 percent or $2.70 to $584.25 per ounce on Tuesday.

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