Gold prices jump to a record above $ 1940 an ounce

Gold prices jump to a record above $ 1940 an ounce

Gold prices rose to record levels, during Monday's trading, as the dispute between the United States and China intensified, while a weak dollar pushed investors to seek refuge in the yellow metal, a safe haven, in the face of risks to the global economy, which suffers from the Covid-19 pandemic.

The spot price of the yellow metal jumped by 2.14%, or by $ 40.79, to $ 1942.8 an ounce, after setting a record at $ 1943.93.

Gold futures for December delivery rose 2.2%, or $ 42.3 to $ 1967.5 an ounce, during today's trading.

 

Silver joined the bullish trend and jumped more than 6% to $ 24.36, the highest level since September 2013.

"The gold is in an excellent position to move up" amid the virus crisis and central banks are seeking liquidity, said Sony Kumari, commodities strategist at ANZ.

“It gets more support from lower yields, a weaker dollar, and geopolitical tension between the United States and China,” she said. Demand for (safe haven) gold is increasing while there is no longer demand for the US dollar. ”

The US currency fell to its lowest level in nearly two years with increasing bets that the Federal Reserve will signal another policy shift towards easing when it meets this week, which involves keeping interest rates low for a longer period.

According to Bloomberg, the rise of the yellow metal came as the US currency fell to its lowest level in more than a year, the latest in a long series of bullish factors - including negative real rates in the US and bets that the Federal Reserve will maintain its policy when it meets this week - This will push prices to their highest levels.