Gold prices moved sharply higher on Monday, lifting the most active gold futures contracts to a firm close, as bond yields dropped a bit after hitting a one-year high.
The dollar’s weakness further aided gold’s uptick. The greenback eased against rivals as traders sought currencies with close ties to the global commodities trade due to an improving economic outlook. The dollar index dropped to 90.00, losing about 0.4% from the previous closing level.
Gold futures for April ended up $31.00 or about 1.7% at $1,808.40 an ounce.
Silver futures for March ended higher by $0.831 at $28.085 an ounce, while Copper futures for March settled at $4.1410 per pound, gaining $0.0670.
The Conference Board released a report today showing a bigger than expected increase by its index of leading U.S. economic indicators in the month of January.
The Conference Board said its leading economic index climbed by 0.5% in January after rising by an upwardly revised 0.4% in December. Economists had expected the leading economic index to rise by 0.3%, matching the increase originally reported for the previous month.
U.K. Prime Minister Boris Johnson today tabled a four-step cautious roadmap in Parliament for the country to be eased out of its strict stay-at-home lockdown, with a tentative June 21 timeline for most limits on social contact to be lifted if the coronavirus infection rates remain in check.
On the stimulus front, U.S. Democrats are looking to swiftly pass the Covid-19 relief bill. The U.S. House of Representatives is expected to vote on President Joe Biden’s proposed package by the end of the week.
Meanwhile, the Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate Banking Committee on Tuesday and the House Financial Services panel the following day.
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