Gold futures surged past $ 1,900 an ounce Monday to match their highest settlement and intraday record, as investors worried about the state of the global economy battered by COVID-19 and weakness in the US dollar amid concerns over the sustainability of recent shares gains.
August gold GC00,
rose $ 33.50, or 1.8%, to settle at $ 1,931 an ounce after such a high price of $ 1,941.90. The settlement surpassed the previous record of $ 1,897.50 as of Friday and Monday’s close also above the previous intraday record of $ 1,923.70 as of September 6, 2011, according to Dow Jones Market Data.
Prices rose 4.8% last week, the biggest increase in the weekly rate since the week ending April 9, and some analysts say the unprecedented $ 2,000 an ounce level is within reach. US stocks closed lower Friday with the heavy Nasdaq Composite COMP,
it marks its first back-to-back decline since mid-May.
Read: Gold is reaching a record high, with prospects at $ 2,000 an ounce stronger than ever
“ With concerns about further pandemic-related lockdowns, the fall in the US dollar, real rates continuing to fall, and mounting tensions between the US and China, the whole list of fundamental drivers to get us there has been delivered in one package … ‘
“Concerned about further pandemic-related lockdowns, the fall in the US dollar, real rates continuing to fall and mounting tensions between the US and China, this is the full list of fundamental drivers for getting us there in one package today,” Stephen Innes, chief global market strategist at AxiCorp, said of that $ 2,000 level in a note to customers.
The ICE US Dollar Index DXY,
decreased by almost 0.9% to 93.64, so far lost 3.9% for the month. The index is trading at its lowest since 2018.
“Given the slowing view of the US economic outlook and ideas that Europe will open a significant macroeconomic lead over the US, it is not surprising that the dollar will once again bottom out and in turn contribute to the upside expansion in precious metal prices, ”Zaner Metals analysts wrote Monday.
“Not surprisingly, investors also contributed to the bullish environment with news that 1.76 million ounces were bought by gold on Friday [exchange-traded funds], with a more amazing purchase of 9.1 million ounces of silver by silver ETFs, “they said.
The gold market “continues to receive a huge amount of attention in the bullish press, which is likely to further encourage the bull camp, and is likely to result in an even larger cross-section of retail investors learning about precious metal ETFs for the first time,” Zaner analysts said With as.
In Monday’s trades, the gold-backed SPDR Gold Trust GLD,
Traded 1.8% higher.
“Another bullish force is an adjustment of expectations for the performance of the US central bank, as soft US data and the infinite threat of infection are starting to shrink sentiment, and we suspect that [Federal Reserve] is now keen to deal with fears of renewed shutdowns, “analysts Zaner Metals said.
The Federal Open Market Committee will make an announcement on monetary policy on Wednesday.
And in China, the US says it has closed its consulate in Chengdu, a measure ordered by Beijing following the closure of the Chinese consulate in Houston last week.
Investors also flocked to gold due to virus outbreaks and the impact on world economies. While investors were consumed by concerns about outbreaks in the southern US states, Spain emerged as a new concern amid a resurgence of the virus, particularly in the northeastern region of Catalonia. The British government put Spain back on a list of countries it found unsafe for travel and ordered travelers to isolate themselves from the popular holiday destination 14 days after returning.
“There’s been a lot of talk about the $ 2K hurdle, which is also my long-term goal,” said Fawad Razaqzada, market analyst at ThinkMarkets, in a market update. “It is clear that there is no guarantee that gold will end up there or indeed stop there, but that goal is only [around] $ 55 off the nightly high. ‘
Meanwhile, September SIU20 silver contract,
climbed $ 1.65, or 7.2%, to settle at $ 24,501 an ounce, which is the highest most active contract settlement since August 2013, according to FactSet data.
September copper HGU20,
rose 0.2% to $ 2.8975 per pound. Platinum PLV20 from October,
added 1.1% to $ 966.60 an ounce, while Palladium PAU20 in September,
ended at $ 2,369.70 an ounce, up 3.3% for the highest finish since March.