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PRECIOUS-Gold rises to record high on stimulus bets, weaker dollar

Published 08/05/2020, 09:01 AM
Updated 08/05/2020, 09:10 AM
© Reuters.
XAU/USD
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XAG/USD
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GC
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SI
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GLD
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DXY
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Aug 5 (Reuters) - Gold scaled an all-time peak on Wednesday,
rising above the key $2,000 mark, as a weaker dollar and hopes
of more economic stimulus to combat the blow from the COVID-19
crisis boosted the safe-haven metal's appeal.

FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $2,022.42 per ounce by
0032 GMT, having hit a record high of $2,030.72 in early Asian
trade.
* U.S. gold futures GCv1 rose 0.9% to $2,039.50.
* Coronavirus cases continue to surge in the United States
and dozens of U.S. states have had to pause or roll back their
reopening plans. More than 18.41 million people have been
reported to be infected worldwide so far. * White House negotiators on Tuesday vowed to work "around
the clock" with congressional Democrats to try to reach a deal
on coronavirus relief by the end of this week. * Gold, which has risen more than 33% so far this year,
tends to benefit from widespread stimulus measures from central
banks because it is widely viewed as a hedge against inflation
and currency debasement.
* The dollar index .DXY fell 0.3% against its rivals,
making gold less expensive for holders of other currencies.
USD/
* Holdings of SPDR Gold Trust GLD rose 0.8% to 1,257.73
tonnes on Tuesday. GOL/ETF
* Further supporting gold, the five-year U.S. Treasury yield
hit a record low, while the benchmark 10-year Treasury yield
fell to a five-month trough on Tuesday. US/
* Asian shares were set to open lower on Wednesday.
MKTS/GLOB
* Silver XAG= fell 0.5% to $24.88 per ounce, platinum
XPT= dropped 0.9% to $928.95 and palladium XPD= slipped 1.1%
to $2,116.64.

DATA/EVENTS (GMT)
0145 China Caixin Services PMI July
0800 EU Markit Serv, Comp Final PMIs July
1230 US International Trade June
1345 US Markit Serv, Comp Final PMIs July
1400 US ISM N-Mfg PMI July

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