The comments came a day after Mnuchin called for several emergency lending programs to expire by the end of the year.
“Markets should be very comfortable that we have plenty of capacity left,” Mnuchin said on CNBC.
He also said that he would talk with US Senate Majority Leader Mitch McConnell and House of Representatives Minority Leader Kevin McCarthy about a strategy that could be used to approach House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer.
Spot gold on Friday rose to US$1,873.30 an ounce.
The surge in gold “is just based off his comments,” Bob Haberkorn, senior market strategist at RJO Futures, said by telephone. “When they can support it, that means there’s more money in the system.”
Still, prices dropped 0.77 percent for the week — the second week of declines — following positive news over shots being developed by companies including Pfizer Inc.
International bullion exchange traded fund (ETF) holdings — which have been essential to gold’s rally to a document in August — are actually on the lowest in additional than two months.
Whereas ETF traders have usually tended to take a long-term view of the market, the excessive value of rolling futures contracts ahead may need introduced in additional short-term merchants, corresponding to hedge funds into ETFs, stated Marcus Garvey, head of metals and bulks commodity technique at Macquarie Group Ltd.
That has led to extra “fast money” within the merchandise, which means a faster response to modifications in gold’s outlook.
‧ Silver for December supply rose US$0.31 to US$24.36 an oz. and December copper was rose US$0.09 to US$3.29 a pound.
Further reporting by AP
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