News18» News»Business»Gold climbs back above $2,000/oz level as dollar slides
1-MIN READ

Gold climbs back above $2,000/oz level as dollar slides

Gold climbs back above $2,000/oz level as dollar slides

Gold rose 1% on Tuesday, climbing back above the $2,000 level breached earlier this month, as the dollar touched a more than twoyear low and investors awaited details of the U.S. Federal Reserve's strategy to combat a pandemicinduced economic slump.

Gold rose 1% on Tuesday, climbing back above the $2,000 level breached earlier this month, as the dollar touched a more than two-year low and investors awaited details of the U.S. Federal Reserve’s strategy to combat a pandemic-induced economic slump.

Spot gold climbed 1.1% to $2,006.84 per ounce by 1010 GMT, having earlier hit a one-week high of $2,009.89. Gold first broke the record $2,000-level early in August.

U.S. gold futures were up 0.8% at $2,015.30.

“The dollar has lost its attraction when it comes to return," Michael Hewson, chief market analyst at CMC Markets UK, said.

Making gold cheaper for those holding other currencies, the dollar index hit it lowest since May 2018, pressured by low yields and bleak U.S. economic data.

On Monday, gold jumped as much as 2.4%, drawing impetus from Warren Buffett’s Berkshire Hathaway’s buying a stake in major gold miner Barrick Gold. Bullion had scaled an all-time peak of $2,072.50 on Aug. 7.

This reinforced gold’s 32% jump this year, helped by a rush to perceived safety in the metal considered a hedge against inflation and currency debasement.

Gold, with its reputation for relative safety, is also drawing investors as the United States ratchets up pressure on China’s Huawei [HWT.UL], CMC’s Hewson said.

For further direction, investors await minutes from the Fed’s last meeting, which are due on Wednesday.

“Traders are getting the last kick at the can ahead of the FOMC minutes, where the view is for the Fed to have talked about YCC (yields curve control) or inflation-targeting which is bad for the dollar and good for gold," said Stephen Innes, chief market strategist at financial services firm AxiCorp.

Silver climbed 3.1% to $28.24 per ounce.

Platinum rose 2.1% to $969.14, while palladium was 0.7% higher at $2,214.68 per ounce.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

first published:August 18, 2020, 17:03 IST