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PRECIOUS-Gold hits record above $2,000/oz on soft dollar, stimulus bets
Published at 05/08/2020 at 08:18

* Recovery worries push 10-year Treasury yield to 5-month low

* Outlook for gold remains 'very strong' - analyst

* Silver rises to more than 7-year high

* Interactive graphic tracking global spread of coronavirus: open in an external browser

(Adds chart, updates prices)

By Brijesh Patel

Aug 5 (Reuters) - Gold scaled an all-time peak on Wednesday, after topping the $2,000 mark in the previous session, spurred on by a weaker dollar, falling U.S. Treasury yields and expectations of more stimulus measures to revive a pandemic-ravaged economy.

Spot gold was up 0.8% at $2,033.86 per ounce by 0655 GMT, after hitting a record high of $2,036.49. U.S. gold futures

rose 1.4% to $2,049.30.

"The drop in the dollar and nominal yields, as speculation remains rife about global growth and any U.S. fiscal package, is what fundamentally drove gold prices higher," IG Markets analyst Kyle Rodda said.

"The outlook remains very strong for gold. Interestingly, we've seen traders reduce their long exposure to gold throughout this recent rally, suggesting new buyers could still come back into the market to push prices higher," he said.

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. The global tally stood at more than 18.41 million.

The rise in cases has dented hopes of a swift U.S. economic rebound, sending the 10-year Treasury yield to a five-month low, reducing the opportunity cost of holding non-interest bearing gold.

The U.S. dollar fell 0.3% against its rivals, making gold cheaper for holders of other currencies.

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

"Despite a potential short-term pull-back, the mid-to-long-term prospect for gold and other precious metals remains bullish against the backdrop of a low interest rate environment and fiscal and monetary stimulus," said DailyFx strategist Margaret Yang.

Elsewhere, silver jumped more than 2% to $26.60 per ounce, its highest since April 2013.

Platinum rose 0.8% to $944.90 and palladium was steady at $2,139.65.

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(Reporting by Brijesh Patel in Bengaluru, additional reporting by Anjishnu Mondal; Editing by Sherry Jacob-Phillips and Barbara Lewis)

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