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PRECIOUS-Gold accelerates higher on fragile economic recovery hopes

Published 07/08/2020, 01:22 am
Updated 07/08/2020, 04:24 am
© Reuters.
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* Gold up more than 35% so far this year

* Silver hits more than seven-year peak at $28.42/oz

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3aIRuz7

(Updates prices)

By Sumita Layek

Aug 6 (Reuters) - Gold extended its record-breaking run on Thursday, driven by expectations of more monetary response as surging virus cases continue to pummel the U.S. economy.

Spot gold XAU= hit an all-time high of $2,069.21 per ounce and was up 0.8% at $2,055.87 at 2:10 p.m. EDT (1810 GMT). U.S. gold futures GCv1 settled 1% higher at $2,069.40.

"There are mixed signals that the economy is recovering and some of the signs of recovery are relatively superficial as they show aggregate figures and not how medium and small enterprises continue to suffer," said Jeffrey Christian, managing partner of CPM Group.

"We have a very long way to go before we see a proper economic recovery."

Data showed U.S. jobless claims fell last week, but a staggering 31.3 million people were receiving unemployment checks in mid-July, as new infections battered the economy. has rallied more than 35% this year as it is considered an asset that should hold its value while the pandemic and money printing by central banks erode the value of others. awaited further policy response as U.S. Democratic leaders and White House officials continued their talks to try to hash out a next wave of relief to help the economy. XAG= prices jumped 4.6% to $28.26 per ounce, having hit a more than seven-year peak of $28.42, helped by a combination of investment and industrial demand.

"While there are no early chart clues to suggest the gold and silver markets are close to major tops, both are now getting short-term overbought, technically, and are due for downside corrections in the uptrends," Kitco Metals senior analyst Jim Wyckoff said in a note.

"And remember that with the higher volatility and bigger daily price gains seen at present, there will also be bigger downside corrections when they come."

Platinum XPT= rose 1.5% to $981.53 per ounce and palladium XPD= climbed 1.6% to $2,216.06.

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