CUR - Gold stops just short of $2000 in best most-active settlement in a year

2023-03-30 18:20:32 ET

Gold futures on Thursday rose to their highest settlement for a most-active contract in more than year, with demand driven by a weaker dollar and lower bond yields as investors foresee a fall in interest rates.

Several analysts believe the banking sector turmoil foreshadows tighter economic conditions and a pause in the Federal Reserve's aggressive interest rate hikes, which could drive further gains.

"During periods of confidence being lost in the financial system or big drawdown periods, it tends to be when gold does the best ," Gratus Capital chief investment officer Todd Jones said.

The most-actively traded contract for Comex gold ( XAUUSD:CUR ) closed +0.7% to $1,999/oz, barely missing the $2,000 threshold.

The most-active contract has jumped nearly 9% in March, topping at an intraday high $2,014.90 last week and on pace for the largest monthly percentage increase since July 2020.

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU )

Shares of gold producers have been some of the stock's market best performers this month: Newmont ( NEM ) has rallied ~11%, Barrick Gold ( GOLD ) has bounced 14%, and Kinross Gold ( KGC ) has climbed 27%, compared with a 1.5% gain for the S&P 500.

Investors pumped $1.26B into gold mutual and exchange-traded funds during the week ended March 22, the largest weekly net inflow since April 2022 .

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