Gold vaults above US$2,000 mark for first time in history on US stimulus bets
NEW YORK (REUTERS) - Gold prices soared past the key US$2,000 mark for the first time in history on Tuesday (Aug 4), as the ultra-low interest rate environment and hopes for more US stimulus to safeguard the coronavirus-hit economy enhanced the safe-haven metal's appeal.. Read more at straitstimes.com.
Spot gold jumped as much as 2 per cent to US$2,017.39 an ounce by 4pm EDT (2000 GMT). US gold futures, which also surged to a record peak of US$2,034.40, settled 1.7 per cent higher at US$2,021."Safe-haven buying has propelled gold prices to breach US$2,000 for the first time as the US dollar tested lows last seen over two years ago, negative real rates fell to levels last seen in 2013 and expectations for further stimulus packages continue to build," said Standard Chartered analyst Suki Cooper.
"Given how quickly prices have rallied, the risk of a temporary pullback has risen," Cooper said, adding the balance of risks still remain skewed to the upside in light of the macro backdrop remaining"exceptionally favourable."Talks between White House and Democratic leaders in the US Congress were finally moving in the"right direction" as they tried to reach an agreement over a major coronavirus relief Bill, a US Senate's top Democrat said.
The confirmation that there has been development in negotiations with Republicans on new Covid-19 support has boosted gold back to recent highs, said Tai Wong, head of base and precious metals derivatives trading at BMO.Bullion has surged a stellar 33 per cent so far this year, supported mainly by lower interest rates and widespread stimulus by global central banks to ease the economic blow from the pandemic. headtopics.com
Prices can rally towards the US$2,300 level by the year-end, according to Edward Moya, senior market analyst at broker OANDA."The treasury market is strongly signalling that this lower interest rate environment is here to stay. In the last decade, treasuries always had the edge over gold but right now that's not the case, we're going to see investors' primary focus be on gold."
Other precious metals also followed suit, with silver rallying as much as 7.3 per cent to a one-week peak of US$26 an ounce on upbeat factory data. Read more: The Straits Times »
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Gold hits record high as Covid-19 fears, weaker US dollar boost demandBENGALURU (REUTERS) - Gold rose to an all-time high on Monday (Aug 3) as a softer US dollar and fears over the global economic fallout from surging coronavirus cases lifted demand for the safe-haven metal.. Read more at straitstimes.com.
Gold hits record high as virus fears, weaker US dollar boost demand[BENGALURU] Gold rose to an all-time high on Monday as a softer US dollar and fears over the global economic fallout from surging coronavirus cases lifted demand for the safe-haven metal. Read more at The Business Times.
Asia shares poised to open lower, gold at fresh recordAsia shares were set to open lower on Wednesday, following a choppy trading session on Wall Street and losses in Europe.
Gold steadies near record high as virus concerns persist[BENGALURU] Gold held steady near record highs on Tuesday as worries over global economic fallout from mounting Covid-19 cases offset an uptick in risk sentiment driven by positive US economic data. Read more at The Business Times.
Gold ETF holdings are booming[SINGAPORE] Investors are so concerned about the global outlook that worldwide holdings in gold-backed exchange-traded funds (ETFs) now stand behind only the official US reserves of bullion after they surpassed Germany's holdings. Read more at The Business Times.
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