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Gold prices surged past $2,100/oz to a new all-time high settlement Monday, driven by increased bets for a June interest rate cut by the U.S. Federal Reserve.
Front-month Comex gold (XAUUSD:CUR) for March delivery closed +1.5% to $2,117.70/oz, capping a 4.2% gain over the past three sessions, while March Comex silver (XAGUSD:CUR) ended +2.7% to $23.779/oz, up 6% during the past three sessions and the best settlement so far this year.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (SLV), (PSLV), (SLVP), (SIVR), (SIL), (SILJ)
The Van Eck Gold Miners ETF (GDX) surged again, finishing +4.2%, led by Harmony Gold (HMY) +14.1%, Coeur Mining (CDE) +8.8%, Anglogold Ashanti (AU) +8.2%, Kinross Gold (KGC) +5.7%, First Majestic Silver (AG) +5.6%, New Gold (NGD) +5.2%, Equinox Gold (EQX) +5%.
Among other major precious metals stocks: Eldorado Gold (EGO) +4.9%, Newmont (NEM) +4.8%, Agnico Eagle Mines (AEM) +4.7%, Royal Gold (RGLD) +4.4%, Alamos Gold (AGI) +4.3%, Gold Fields (GFI) +4.1%, Buenaventura (BVN) +3.9%, Pan American Silver (PAAS) +3.8%, Iamgold (IAG) +3.6%, Barrick Gold (GOLD) +3.5%, B2Gold (BTG) +3.5%.
MKS PAMP metals strategist Nicky Shiels cited four factors driving gold's rally: a fall in real and nominal rates after an inflation report in-line with economists expectations; a return of fears about the banking sector; an influx of investor money into commodities, motivated in part by recently rising oil prices; and comments last week from Federal Reserve Governor Christopher Waller that he would like to see more shorter-dated Treasury securities in the central bank's portfolio.
Gold could easily push past its new record, Blue Line Futures' Phillip Streible told Reuters, noting Fed Chair Jerome Powell speaks two times this week and "he could come out and be a bit more dovish... [and] we could see a miss on the [U.S.] jobs data on Friday," all factors that would help gold.