Commodity News
HeadLine : Gold Futures Touch Record as Haven Demand Builds, Contract Rolls
Date : Jul 27 2020
Gold futures traded at a record as the dollar plunged and concerns about the global economy boosted demand for havens, while the most-active contract rolled to a month that had already topped the all-time high. Bullion’s move came as a gauge of the dollar fell to the lowest in more than six months amid negative real rates in the U.S. and bets the Federal Reserve will keep policy accommodative when it meets this week. Inflows into gold-backed exchange traded funds this year have surpassed a record set in 2009, with total holdings at an all-time high of more than 3,300 tons. The contract roll is another fillip to prices. December overtook August as the contract with the highest open interest on Thursday, though final data wasn’t released until the Friday trading session was already underway in Asia. The December contract touched $1,927.10 an ounce Thursday, above the record for the most-active contract of $1,923.70 reached in 2011. Investors have poured into gold as the coronavirus pandemic’s hit to global growth underpinned its status as a safe haven. But the metal’s getting support from a long list of factors: geopolitical tensions are rising, real rates have tumbled, the dollar is weaker, and government and central banks worldwide have unleashed vast stimulus measures to try and boost economies.

Source: Investing.com
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