Gold up in reaction to coordinated buying of silver

By Xu JingUnreguser
  • World
  • Tuesday, 02 Feb 2021

CHICAGO, Feb. 1 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as the market reacted to retail investors' purchase of silver in a coordinated way.

The most active gold contract for April delivery rose 13.6 U.S. dollars, or 0.74 percent, to close at 1,863.9 dollars per ounce.

Retail investors continued to buy silver contracts en masse on Monday, giving a boost to gold as well, as analysts believe that investors are moving to the precious metal as a safe haven. Many institutional traders are looking for a place to hedge against losses from short positions in the silver market.

Gold found additional support as the Institute for Supply Management reported Monday that its gauge of manufacturing activity fell to 58.7 percent in January from 60.7 percent in December.

Nevertheless, a stronger dollar capped gold's growth.

Over the medium term, the market is digesting the increasing likelihood that the U.S. Congress will investigate and possibly take regulatory action against the retail investors who invaded the markets last week to manipulate stock prices to hurt hedge funds.

Silver for March delivery rose 2.504 dollars, or 9.3 percent, to close at 29.418 dollars per ounce. Platinum for April delivery rose 59.6 dollars, or 5.52 percent, to close at 1,138.8 dollars per ounce.

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