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Gold prices surge past $2,100 mark

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2024-03-05

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World gold prices surged strongly on Monday, leaping back over $2,100 an ounce on Comex in New York. Silver prices also rose sharply as analysts struggled to pinpoint a driving factor for the strong gains.

Some attributed the sudden rise to technical support, while others believed it was fueled by a belief that US rates might start falling in June. Additionally, news from the Middle East and China provided some encouragement to the bulls.

Comex April gold rose by $29.40 to $2,125.50, while May silver was up by 75 cents at $24.12. The Comex price has increased by more than 4% in the past five trading sessions, surpassing the 2.5% rise year to date.

US dollar futures hit three-month highs on Monday, and silver touched levels not seen for two months. The Australian dollar price exceeded $3,200 an ounce, offering a welcome bonus with the currency still under 66 US cents.

Despite a small gain in the overnight futures market, the surge in gold and silver prices is expected to provide small to medium miners of both metals with nice gains at the start of Tuesday.

Federal Reserve Chair Jay Powell will be in the spotlight this week ahead of the release of the February jobs data on Friday. Powell is scheduled to appear before the Senate and House of Representatives on Wednesday and Thursday, placing the path of interest rates squarely in the markets' eye by the time the jobs data is released on Friday.

US bond yields edged higher on Monday, typically seen as a negative for commodities, but investors seemed to ignore this, chasing both metals.

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