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Gold exploded over $80 higher, the largest daily dollar gain ever following the Federal Reserve's massive new stimulus package that includes unlimited purchases of Treasurys and mortgage-backed securities.


Gold futures were already up after recovering from last week's sell off as a both a safe haven and response to other derivatives moves following the thwarting of the $2 trillion COVID-10 pandemic rescue fiscal package in the US. Monday was actually the third straight session hugher after the previous collapse.

The move by Fed officals is also to reverse or at least slow the U.S. dollar down as it has been rising sharply, especially against emerging currencies. This was also positive for Gold in US dollars.

Gold for April delivery GCJ20, on Comex rose $83, or 5.6%, to settle at $1,567.60 an ounce. Last week it was down 2.1%. Today's move was largest one-day dollar gain based on records dating back to November 1984, according to Dow Jones Market Data. Gold also notched the largest daily percentage rise since March 2009.

Gold W 3 20 2020

Silver recovers also

May silver SIK20 also rose. it was 87.6 cents, or 7.1%, to $13.261 an ounce, after a weekly decline of 14.6%. Prices last Wednesday settled at the lowest since January 2009. Gold and silver had been selling off as investors have been forced to sell on margin ot to raise cash amid the persistant global rout in financial markets.

Silver W 3 20 2020

Overall strength in the dollar had weighed on the price of precious metals. It is not just the US pulling out all stops, Germany may authorize more than €350 billion in new debt, according to reports.

Other metals gained also with April platinum PLJ20, up 0.8% to $627.50 an ounce, June palladium PAM20,% up 1.1% to $1,556.90 an ounce. Reflecting the shattered world economy May copper HGK20 fell 3.3% to $2.1005 a pound.

From the TradersCommunity News Desk

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