Gold prices rose sharply on Tuesday, rebounding from near five-month lows hit in the previous session, as the dollar’s steep slide boosted the demand for the safe-haven asset.
Silver prices rose on Tuesday, recouping yesterday’s losses that were more than 5%, as the US dollar fell against most currencies. The US administration announced that it would start distributing doses of two Covid-19 vaccines to some citizens in attempts to contain the spreading disease.
The US dollar index plunged to its lowest in more than two and a half years overnight.
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Markets are closely focusing the latest updates regarding the coronavirus crisis, keeping in mind that the Trump administration intends to distribute two Covid-19 vaccines to US citizens later this month.
Decline in U.S. manufacturing activity in the month of November, and hopes that there will be a compromise in the U.S. Senate over a coronavirus relief proposal contributed to gold’s rise.
Crude oil prices drifted lower and the most active crude futures contract dropped to a one-week closing low on Tuesday, weighed down by the decision of OPEC and its allies to delay a discussion on output cuts by a couple of days.
The OPEC and its allies Russia and other major producers, who were originally set to take a call on extending output cuts beyond January, have now decided to postpone talks to Thursday.
The oil market fundamentals remain weak and point to a significant oversupply during the early point of the coming year, due to continued increase in coronavirus cases in several regions. Resumption of production in Libya from September is also contributing to fears of oversupply in the market.
Copper futures climbed to their highest level more than seven years on Tuesday, buoyed by signs of growing demand for the industrial metal, with global supplies expected to fall short of demand this year despite a dip in copper consumption tied to the pandemic.
