Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
PRECIOUS-Gold rises to record high on stimulus bets, weaker dollar
Published at 05/08/2020 at 02:01

Aug 5 (Reuters) - Gold scaled an all-time peak on Wednesday, rising above the key $2,000 mark, as a weaker dollar and hopes of more economic stimulus to combat the blow from the COVID-19 crisis boosted the safe-haven metal's appeal.

FUNDAMENTALS

* Spot gold was up 0.2% at $2,022.42 per ounce by 0032 GMT, having hit a record high of $2,030.72 in early Asian trade.

* U.S. gold futures rose 0.9% to $2,039.50.

* Coronavirus cases continue to surge in the United States and dozens of U.S. states have had to pause or roll back their reopening plans. More than 18.41 million people have been reported to be infected worldwide so far.

* White House negotiators on Tuesday vowed to work "around the clock" with congressional Democrats to try to reach a deal on coronavirus relief by the end of this week.

* Gold, which has risen more than 33% so far this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

* The dollar index fell 0.3% against its rivals, making gold less expensive for holders of other currencies.

* Holdings of SPDR Gold Trust rose 0.8% to 1,257.73 tonnes on Tuesday.

* Further supporting gold, the five-year U.S. Treasury yield hit a record low, while the benchmark 10-year Treasury yield fell to a five-month trough on Tuesday.

* Asian shares were set to open lower on Wednesday.

* Silver fell 0.5% to $24.88 per ounce, platinum

dropped 0.9% to $928.95 and palladium slipped 1.1% to $2,116.64.

DATA/EVENTS (GMT) 0145 China Caixin Services PMI July 0800 EU Markit Serv, Comp Final PMIs July 1230 US International Trade June 1345 US Markit Serv, Comp Final PMIs July 1400 US ISM N-Mfg PMI July

(Reporting by Brijesh Patel in Bengaluru; Editing by Aditya Soni)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))