Metals Stocks: Gold price surge 2% to retake $1,700 as BofA forecasts the metal will surge to $3,000

Metals Stocks

Silver climbs more than 1% in Wednesday morning trade


Getty Images

Gold futures were higher Wednesday morning as weakness in the U.S. dollar and nagging concerns about the global economy, supported a rally in the precious metal.

“All the bullish reasons to belong to gold in the medium term still apply—notably, the incomprehensible amount of money being printed by central banks and fiscal spending by governments to offset the impact of the coronavirus outbreak,” wrote Stephen Innes. global chief market strategist at AxiCorp, in a daily note.

Gold for June delivery
GC00,
+1.99%

on Comex rose $35.10, or 2.1%, at $1,722.90 an ounce, after shedding 1.4% on Tuesday and marking the lowest close for an active-month contract since April 8, FactSet data show.

BofA Global Research raised its 18-month price target for gold to $3,000 an ounce from $2,000 or more than 50% above a nine-year old record at around $1,921, citing the prospects of endless monetary expansion from central banks, including the Federal Reserve, to limit the economic damage from the COVID-19 pandemic.

A slide in the dollar, off 0.3% against a basket of a half-dozen currencies, as gauged by the Intercontinental Exchange Inc.
DXY,
-0.27%

also was helping to support an advance for precious metals. A softer greenback can make commodities priced in the currency more attractive for buyers using other monetary units.

May silver
SIK20,
+1.20%
,
meanwhile, picked up 17 cents, or 1.1%, at $15.04 an ounce, following a 4.7% slide in gold’s sister metal.

Among other metals, May copper
HGK20,
+1.03%

was up 2 cents, or 1%, at $2.253 a pound. July
PLN20,
+1.14%

advanced 0.5%, to reach $761.30 an ounce and June palladium
PAM20,
-0.45%

retreated 0.3% at $1,898.90 an ounce.

What's your reaction?
Happy0
Lol0
Wow0
Wtf0
Sad0
Angry0
Rip0
Leave a Comment

escort eskişehir escort samsun escort gebze escort sakarya escort edirne