Price of gold surges to all-time high at Rs128,700/tola

Andrew Cummings
August 6, 2020

"Gold remains supported by persistent weakness in the US dollar, strong investor interest and safe-haven buying amid rising coronavirus cases globally and increased US-China tensions".

Gold in the worldwide markets hit a new high by crossing the important barrier of $2,000 mark on hopes of another economic stimulus by the USA government.

Spot gold was steady at US$2,039.75 per ounce by 0042 GMT, after hitting an all-time high of US$2,055.10 on Wednesday. Platinum rose 0.9% to $975.80 and palladium was up 1% at $2,203.25. That helps us fund This Is Money, and keep it free to use.

The dealers said that gold prices surged following the global trend as the rates in the worldwide market rose by $66 to an all-time high level of $2,041 per ounce.

As the Covid-19 pandemic has roiled markets, gold has gained almost 35 per cent this year and is one of 2020's best performing assets.

Concerns that the US economy is stalling amid a surge in coronavirus cases has increased calls for more fiscal aid, a move stock investors have welcomed. A leading White House negotiator in talks with congressional Democrats and some Senate Republicans said they viewed Friday as the deadline to reach a deal or drop talks.

All Pakistan Jewellers Manufacturers Association Chairman Mohammad Arshad recalled that global gold price had witnessed a massive rally in 2011, reaching to $1,933 per ounce, which has now been broken.

"Market is slow but gold is on a high run", Khan added.

The dollar extended losses after US private payrolls growth slowed sharply in July, pointing to a loss of momentum in the labor market and overall economic recovery as new COVID-19 infections spread across the United States. Even after topping $2,000, there are plenty of forecasters projecting further substantial price gains.

Japan's Nikkei was off 0.86% while Australia's benchmark index slipped 1%. U.S. Treasury yields rose after the report, halting their recent trend lower.

The US government bond yield curve steepened on Wednesday as prices fell on the prospect of increased supply in longer-dated debt.

Bullion is up nearly 35 per cent this year, with its haven status enhanced by sliding US real yields. In the worldwide market, gold was trading with gains at United States dollars 2,045.70 per ounce, while silver was quoting at USD 27.57 per ounce.

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