Platinum at highest price in four years as gold surges again on dollar weakness

GOLD hit its highest level in almost two months assisted by a weaker dollar, said Bloomberg News. The metal was trading at $1,924.23 per ounce and at R906,309.93 per kilogram at the time of writing.

Silver also surged on the first full trading day of the new year, while platinum advanced to its priciest since 2016. After moving through $1,000/oz on December 1 – its highest level in nearly 12 months – platinum was now trading at $1,107.45/oz.

“I see gold being pushed higher by lower real interest rates and higher inflation expectations,” Nicholas Frappell, global general manager at Sydney-based ABC Bullion told Bloomberg News. “The market is not looking for any signs of tightening should inflation pick up in the near term. Gold traditionally outperforms when real interest rates are low.”

Bullion is rallying as a gauge of the US currency languishes at the lowest level since 2018 after sliding for three quarters.

The gains in the haven come even as US and global stocks are at all-time highs amid expectations that widespread vaccine distribution in 2021, further central bank support, and government aid will reignite growth and underpin better corporate profits.

Gold’s recent climb has also been aided by renewed declines in US real yields, which boost the precious metal’s allure.

Political uncertainty and the build-up of tensions in Washington was also helping to support gold and silver, said Avtar Sandu, a senior manager for commodities at Phillip Futures Pte.