Gold Futures Rise Sharply, Settle Above $2,000 Mark For First Ever Time
Gold prices rose sharply on Tuesday and the front-month contract ended above $2,000 an ounce for the first-ever time in history, as traders rushed for the safe-haven commodity amid continued concerns about the virus pandemic and global economy.
Rising tensions between the U.S. and China, and the continued impasse over U.S. stimulus package supported gold’s rise.
A somewhat sluggish dollar contributed as well to the yellow metal’s climb. The dollar index, which rose to 93.83 by mid-morning, faltered to 93.40 as the day progressed, and was up just marginally from previous close.
Gold futures for December ended up $34.70 or about 1.7% at $2,021 an ounce, and kept edging higher after the session.
Silver futures for September ended stronger by $1.611 or about 6.6% at $26.028 an ounce, while Copper futures for September settled at $2.8945 per pound, losing $0.0175 or 0.6%.
On the virus front, many countries have reportedly extended lockdowns to curb the coronavirus pandemic, and this has dimmed the chances of any quick economic rebound.
In news about stimulus talks, White House officials and congressional Democrats continue to seek a compromise on the composition of a package. Charles Evans, the Chicago Federal Reserve president, said on Monday that fiscal policy is really fundamental for getting the economy going.
Amid growing talk that a deal won’t be reached until September, St. Louis Fed President James Bullard said separately that he was optimistic a deal could be reached.
Meanwhile, U.S.-China tensions also remain on investors’ radar after U.S. President Donald Trump said he will ban popular Chinese-owned video app TikTok in the United States unless a tech company such as Microsoft buys it. China will not accept U.S. theft of TikTok, the China Daily newspaper said today.
In another development, the editor of a newspaper published by China’s ruling Communist Party’s People’s Daily said that Beijing would retaliate if all Chinese journalists based in the United States are forced to leave the country.