Gold Futures Settle At Fresh Near 9-year High On Safe Haven Demand
Gold prices moved higher on Wednesday, extending recent gains, amid an escalation in tensions between the U.S. and China, and on concerns about the spread of coronavirus in the U.S.
A weaker dollar contributed as well to the rise in gold prices. The dollar index slid to a low of 94.83 in the European session, and was last seen at 95.02, down 0.1% from previous close.
Gold futures for August ended up $21.20 or about 1.2% at $1,865.10, a fresh closing high since September 2011, and now look all set to move past an all-time high of $1,923.70, recorded in early September 2011.
Silver futures for September settled stronger by $1.59 or 7.4% at $23.144 an ounce, the highest settlement in nearly seven years.
Copper futures for September closed at $2.9245 per pound, losing about 1.1% in the session.
In coronavirus news, the U.S. pandemic may “get worse before it gets better” President Donald Trump said as the country reported more than 1,000 coronavirus-related deaths on Tuesday. More than 65,000 new covid-19 cases were recorded yesterday, adding to a nationwide tally of more than 3,874,000 since the pandemic began.
Meanwhile, tensions between the U.S. and China have come to the fore again after the U.S. asked Beijing to close its diplomatic consulate in Houston within the next 72 hours and Chinese foreign ministry spokesperson Wang Wenbin condemned the action and warned of retaliation if the U.S. does not reverse its decision.