Thursday, 22 October, 2020
Home Business Spot Gold Touches New Record High Amid US-China Tensions, Dollar Fall

Spot Gold Touches New Record High Amid US-China Tensions, Dollar Fall

Non-yielding gold is taken into account a hedge towards inflation and foreign money debasement

Gold surged to file highs on Monday as an intensifying US-China row and a weaker greenback despatched buyers scurrying to the protection of bullion to hedge towards the dangers to a world economic system already reeling from the COVID-19 pandemic. Spot gold rose 1.7 per cent to $1,934.06 per ounce by 0802 GMT (1:32 pm in India) after hitting a file excessive of $1,943.93 per ounce. US gold futures gained 1.7% to $1,929.40. Silver too joined the rally, leaping 5.5 per cent to $24, after hitting its highest since September 2013 at $24.36.

Gold is in “good situation to maneuver increased”, stated ANZ commodity strategist Soni Kumari, as central banks push for liquidity amid the pandemic.

“Additional help can be coming from falling yields, weaker greenback and geopolitical tensions between the US and China. The safe-haven demand (for gold) has been rising whereas there may be none for greenback anymore.”

The greenback fell to a close to two-year low on elevated bets the Federal Reserve may flag one other accommodative coverage shift when it meets this week, implying decrease rates of interest for longer.

China seized the US consulate in Chengdu, retaliating to the closure of its personal consulate in Houston.

In the meantime, COVID-19 instances surged to over 16.13 million globally, driving expectations for extra stimulus to stem the financial blow.

“So long as the (virus) state of affairs will get worse, the market is discounting extra stimulus for an extended time frame and in larger portions,” stated Edward Meir, analyst at ED&F Man Capital Markets.

Non-yielding gold is taken into account a hedge towards inflation and foreign money debasement, with analysts additionally pointing to large inflows into gold-backed alternate traded funds as a driver behind its 28 per cent rally in 2020.

Nonetheless, “robust developments” on the COVID-19 vaccine entrance and an easing of China-US tensions may immediate a correction, ANZ’s Kumari stated.

Platinum rose 2.eight per cent to $939.63 and palladium gained 0.four per cent to $2,227.60.

Most Popular

Ayushmann Khurrana on his next with Abhishek Kapoor: It is a beautiful, progressive love story

By: Leisure Desk | New Delhi | Revealed: July 29, 2020 8:43:23 am Ayushmann Khurrana and Abhishek Kapoor movie will launch subsequent 12...

Who is Dhanashree Verma?

By: Leisure Desk | New Delhi | Revealed: August 8, 2020 6:42:23 pm Dhanashree Verma is a YouTuber and dancer by career. (Picture:...

Sushant Singh Rajput’s sister Shweta: I only wish I could have protected him from everything

Written by Sana Farzeen | Mumbai | Revealed: July 27, 2020 2:04:16 pm Sushant Singh Rajput’s sister Shweta shared tales from their...
English English हिन्दी हिन्दी ਪੰਜਾਬੀ ਪੰਜਾਬੀ