Tags: gold | price | 9 year high | china

Gold Hits 9-Year High, Nears $1,900 on US-China Tensions

Gold Hits 9-Year High, Nears $1,900 on US-China Tensions

Thursday, 23 July 2020 02:52 PM

Gold prices jumped more than 1%, just shy of the $1,900 level on Thursday, boosted by an easing dollar and hopes for more stimulus to revive virus-hit economies, while a rise in U.S. jobless claims raised concerns of a slower economic recovery.

Spot gold rose 0.8% to $1,886.09 per ounce by 2:06 p.m. EDT (1806 GMT), having hit its highest since September 2011 at $1,897.91.

U.S. gold futures settled up 1.3% at $1,890.

"The macro environment continues to evolve favorably for gold with the dollar index weakening to two-year lows and negative real yields falling further," said Standard Chartered analyst Suki Cooper.

The dollar dipped 0.3%, having hit a near two-year low earlier, making gold less expensive for holders of other currencies.

"Expectations of further stimulus and heightening geopolitical tensions continue to bolster safe-haven demand," Cooper added. Non-yielding gold has surged 24% this year, underpinned by lower interest rates and widespread stimulus measures from major central banks.

U.S. Senate Republicans plan to propose another round of direct payments to Americans in the next coronavirus relief bill, a senior aide said on Thursday.

The number of Americans filing for unemployment benefits unexpectedly rose last week for the first time in nearly four months, suggesting the labor market was stalling amid a resurgence in new infections.

"It (jobless claims data) tells you that at least here in the States, we still have a long way to go before we recover," said Edward Meir, analyst at ED&F Man Capital Markets.

Elsewhere, silver was 2.2% lower at $22.52 per ounce, having hit a nearly seven-year high earlier in the session. Palladium edged down 0.2% to $2,142.79 per ounce, and platinum fell 1.1% to $911.53.

Market tightness in the second half of 2020, supported by monetary and fiscal stimulus measures, should support palladium prices over the next 12 months, UBS said in a note. It added that it expected the auto catalyst metal to reach $2,500/oz by mid-2021.

© 2020 Thomson/Reuters. All rights reserved.

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Gold prices climbed over 1% to a nine-year high on Thursday, buoyed by weaker dollar and unprecedented stimulus measures to revive coronavirus-hit economies, while rise in U.S. jobless claims underpinned fears of a slow recovery.
gold, price, 9 year high, china
Thursday, 23 July 2020 02:52 PM
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