“As of 4:40 PM EDT gold futures basis the most active December contract is currently up $7.20 and fixed at $1535 per troy ounce. This is a new record close for this calendar year. Although gold futures had traded to an intraday high of $1545 on Monday of this week, the effective close came in at $1514.
It is been a perfect storm market scenario with multiple economic and geopolitical events fueling this most recent run up.
Central banks globally including the Federal Reserve have recently pivoted from a monetary policy of quantitative normalization or tightening, to a much more accommodative policy with rate cuts and the availability of cheap money. This reversal to a much more dovish demeanor includes rate cuts as well as major asset purchases by central banks to reinvigorate the economic expansion.”
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