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PRECIOUS-Gold rises to record high on stimulus bets, weaker dollar

Published 05/08/2020, 11:01 am
Updated 05/08/2020, 11:06 am
© Reuters.
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Aug 5 (Reuters) - Gold scaled an all-time peak on Wednesday, rising above the key $2,000 mark, as a weaker dollar and hopes of more economic stimulus to combat the blow from the COVID-19 crisis boosted the safe-haven metal's appeal.

FUNDAMENTALS

* Spot gold XAU= was up 0.2% at $2,022.42 per ounce by 0032 GMT, having hit a record high of $2,030.72 in early Asian trade.

* U.S. gold futures GCv1 rose 0.9% to $2,039.50.

* Coronavirus cases continue to surge in the United States and dozens of U.S. states have had to pause or roll back their reopening plans. More than 18.41 million people have been reported to be infected worldwide so far. White House negotiators on Tuesday vowed to work "around the clock" with congressional Democrats to try to reach a deal on coronavirus relief by the end of this week. Gold, which has risen more than 33% so far this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

* The dollar index .DXY fell 0.3% against its rivals, making gold less expensive for holders of other currencies. USD/

* Holdings of SPDR Gold Trust GLD rose 0.8% to 1,257.73 tonnes on Tuesday. GOL/ETF

* Further supporting gold, the five-year U.S. Treasury yield hit a record low, while the benchmark 10-year Treasury yield fell to a five-month trough on Tuesday. US/

* Asian shares were set to open lower on Wednesday. MKTS/GLOB

* Silver XAG= fell 0.5% to $24.88 per ounce, platinum XPT= dropped 0.9% to $928.95 and palladium XPD= slipped 1.1% to $2,116.64.

DATA/EVENTS (GMT) 0145 China

Caixin Services PMI

July 0800 EU

Markit Serv, Comp Final PMIs July 1230 US

International Trade

June 1345 US

Markit Serv, Comp Final PMIs July 1400 US

ISM N-Mfg PMI

July

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