* U.S. gold futures hit all-time high of $2,034.40/oz
* Democrats, White House move closer in COVID-19 stimulus
talks
* Gold prices can hit $2,300 level by the year-end -analyst
* Silver jumps more than 7% to one-week high
(Adds graphics, updates prices)
By Sumita Layek
Aug 4 (Reuters) - Gold prices soared past the key $2,000
mark for the first time in history on Tuesday, as the ultra-low
interest rate environment and hopes for more U.S. stimulus to
safeguard the coronavirus-hit economy enhanced the safe-haven
metal's appeal.
Spot gold XAU= jumped as much as 2% to $2,017.39 an ounce
by 4 p.m. EDT (2000 GMT). U.S. gold futures GCv1 , which also
surged to a record peak of $2,034.40, settled 1.7% higher at
$2,021.
"Safe-haven buying has propelled gold prices to breach
$2,000 for the first time as the U.S. dollar tested lows last
seen over two years ago, negative real rates fell to levels last
seen in 2013 and expectations for further stimulus packages
continue to build," said Standard Chartered analyst Suki Cooper.
"Given how quickly prices have rallied, the risk of a
temporary pullback has risen," Cooper said, adding the balance
of risks still remain skewed to the upside in light of the macro
backdrop remaining "exceptionally favourable."
Talks between White House and Democratic leaders in the U.S.
Congress were finally moving in the "right direction" as they
tried to reach an agreement over a major coronavirus relief
bill, a U.S. Senate's top Democrat said. The confirmation that there has been development in
negotiations with Republicans on new COVID-19 support has
boosted gold back to recent highs, said Tai Wong, head of base
and precious metals derivatives trading at BMO.
Bullion has surged a stellar 33% so far this year, supported
mainly by lower interest rates and widespread stimulus by global
central banks to ease the economic blow from the pandemic.
Prices can rally towards the $2,300 level by the year-end,
according to Edward Moya, senior market analyst at broker OANDA.
"The treasury market is strongly signalling that this lower
interest rate environment is here to stay. In the last decade,
treasuries always had the edge over gold but right now that's
not the case, we're going to see investors' primary focus be on
gold."
Other precious metals also followed suit, with silver
XAG= rallying as much as 7.3% to a one-week peak of $26 an
ounce on upbeat factory data. Platinum XPT= rose 2.2% to $936.71 and palladium XPD=
rose 2.2% to $2,129.17.
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Spot gold surpasses $2,000 per ounce https://tmsnrt.rs/33p7IvR
Gold sprints to record peak https://tmsnrt.rs/39ZQJS7
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