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December 12, 2024
PI Global Investments
Precious Metals

Precious metals shine as dollar slumps


Gold and iron ore traded higher on Monday, with the precious metal hitting new highs after the US dollar fell to seven-month lows. Iron ore futures on the SGC platform in Singapore jumped more than 3% to close Monday evening at US$95 a tonne for 62% Fe fines.

This unexpected rise came after data released late Friday showed no change in the amount of iron ore in portside stocks at China’s 45 major ports. The figure remained around 150 million tonnes, more than 20% higher than a year ago.

In New York, Comex gold futures ended at US$2,542.60 an ounce for the December contract and US$2,502 an ounce for the spot month as the US dollar drifted to levels not seen since late December/early January. The Australian dollar traded around 67.28 US cents in New York, the highest level for around a month. The World Gold Council’s Australian dollar price was just over A$3,721 an ounce.

US bond yields eased ahead of the Kansas City Federal Reserve’s annual Jackson Hole symposium, starting Friday when Fed Chair Jay Powell is due to speak. Gold for December delivery was last seen up US$2.00 to US$2,539.80 per ounce, building on Friday’s record close of US$2,537.80.

Gold prices have climbed 22% since the start of the year, reaching a series of records on expectations that the Federal Reserve is ready to begin cutting interest rates as inflation slows to near its 2% target. The dollar dipped, with the ICE dollar index down 0.51 points to 101.95, the lowest since late December. Treasury yields were mixed, with the US two-year note around 4.07%, while the yield on the 10-year note was down one basis point to 3.876%.



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