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Commodity News |
HeadLine : |
Gold Soars Above $2,000 On Pandemic Fears |
Date : |
Aug 5 2020 |
Gold’s mega rally took another upturn on Tuesday as it surpassed another major hurdle at $2,000 per ounce. Spot gold advanced 1.4% to $2,004.97 per ounce, after reaching an intraday high of $2,009.20 earlier. Bullion has surged more than 30% so far this year to a record high and is one of the best-performing assets in 2020 as a result of increased safe-haven demand during the coronavirus pandemic. Investors are driven by the belief that the metal will hold its value better than other assets as fallout from covid-19 ripples through the global economy. In the US, the world’s largest economy, central bank stimulus has pushed inflation-adjusted bond yields to record lows, making non-yielding gold more attractive. The dollar has also weakened sharply, making bullion cheaper for buyers with other currencies. The never-before-reached $2,000/oz is a major psychological resistance level, with gold’s 49-year trend channel resting just below it at $1,983. Early support is coming in around its 20-day moving average at $1,875 and the bottom of its 4-month uptrend around $1,830.
Source: Investing.com
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