Futures Pros – Gold futures advanced for the fifth consecutive day on Thursday, rallying to a fresh 3-week high, as the U.S. dollar weakened broadly against its major counterparts in thin year-end trade, boosting the appeal of the precious metal. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD 1,414.55 a troy ounce during European morning trade, jumping 0.23%. It earlier rose to USD 1,415.05 a troy ounce, the highest price since December 7, when gold hit an all-time high of USD 1,431.03 a troy ounce. Gold prices were boosted as the U.S. dollar came under broad selling pressure after U.S. Treasuries advanced, pushing the yield on the benchmark 10-year note down, following a U.S. government USD 29 billion auction of seven-year notes. The 10-year note yield dropped as much as 16 basis points to 3.32%, the biggest drop since June 4. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% during European morning trade. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Meanwhile, silver for March delivery hit a fresh 30-year high, soaring 0.87% to trade at USD 30.86 a troy ounce, while copper for March delivery jumped 1.34% to trade at USD 4.371 a pound during European morning trade. Earlier in the day, copper for March delivery rose to an all-time high for the third consecutive day, hitting USD 4.378 a pound.

Source