Gold futures are seesawing on Tuesday as the yellow metal struggles to find concrete direction during the quiet holiday trading week. Gold prices are looking to retest $1,900 heading into 2021 amid a weakening US dollar and coronavirus stimulus in Washington. But market analysts are still optimistic about gold’s performance next year.
February gold futures picked up $2.40, or 0.13%, to $1,882.70 per ounce at 17:42 GMT on Tuesday. Gold has been trading relatively sideways over the last week, slipping 0.2%. But the yellow metal will finish the year up close to 21%.
Silver, the sister commodity to gold, is deep in the red throughout the holiday market session. March silver futures tumbled $0.254, or 0.96%, to $26.285 an ounce. The white metal has been rallying in December, advancing more than 15%. Silver prices will settle the year up about 50%.
The broader financial markets are keeping an eye on the events unfolding in Washington. After President Donald Trump signed the $908 billion coronavirus stimulus and relief bill that raises income-support payments from $600 to $2,000, and the Democrat-controlled House overwhelmingly voting in favor of the increase, Senate Republicans are blocking the standalone measure.
Senate Majority Leader Mitch McConnell (R-KY) outlined three priorities that President Trump demanded lawmakers to home in on: bigger stimulus checks, Section 230 legal liability protections for internet platforms, and widespread election fraud. Since there is no specific plan in the works, Sen. McConnell noted that “the Senate will begin a process to bring these three priorities into focus.”
GOP officials are mixed on the stimulus boost. Senator Marco Rubio (R-FL) expressed concern over the ballooning deficit, but he noted that Americans are struggling and need relief. Senator Josh Hawley (R-MO) has been advocating for these payments consistently, even working with Senator Bernie Sanders (I-VT) to pass the measure. Senator Ron Johnson (R-WI) has gone as far as rejecting $1,200 checks.
The Treasury Department has confirmed that the $600 payments would start going out this week, and if Congress approves the increase to $2,000, then it would add funds to the already distributed amount.
Precious metals are paying attention to a sliding greenback, with the US Dollar Index (DXY) falling 0.33% to 90.04, from an opening of 90.21. The index has plummeted 1.4% over the last month, adding to its 2020 decline of nearly 7%. A lower buck is good for dollar-pegged commodities because it makes it cheaper for foreign investors to purchase.
In other metal markets, February copper futures slipped $0.019, or 0.53%, to $3.552 per pound. February platinum futures tacked on $10.40, or 0.99%, to $1,059.50 an ounce. February palladium futures fell $15.80, or 0.67%, to $2,336.00 an ounce.