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PRECIOUS-Gold hits new record high, on track for ninth weekly rise

Published 08/07/2020, 08:58 AM
Updated 08/07/2020, 09:00 AM
© Reuters.
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XAG/USD
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GC
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Aug 7 (Reuters) - Gold scaled a new all-time peak on Friday
and was set for its ninth straight weekly gain, as demand was
boosted by a softer dollar, falling U.S. Treasury yields and
worries over the global economic fallout from rising COVID-19
cases.

FUNDAMENTALS
* Spot gold XAU= was up 0.3% at $2,068.32 per ounce by
0035 GMT, having hit a record high of $2,072.50 in early Asian
trade. Bullion is up more than 4.7% so far this week.
* U.S. gold futures GCv1 rose 0.5% to $2,078.70.
* The dollar index .DXY held close to a more than two-year
low and was heading for its seventh consecutive weekly decline.
A weaker greenback makes gold less expensive for holders of
other currencies. USD/
* Benchmark 10-year Treasury yields fell to their lowest
levels in five months, reducing the opportunity cost of holding
non-interest bearing gold. US/
* Coronavirus cases continue to surge in the United States
and stood at more than 18.94 million globally. * Senate Majority Leader Mitch McConnell said the U.S.
economy needs an "additional boost" to cope with the fallout
from the pandemic, as Republicans and Democrats remained far
apart about what to include in another wave of coronavirus
stimulus. * The number of Americans seeking jobless benefits fell last
week, but a staggering 31.3 million people were receiving
unemployment checks in mid-July, suggesting the labor market was
stalling. * Investors' focus will be on the U.S. nonfarm payroll data
due later in the day.
* Asia shares were poised to open higher on Friday, tracking
global equity markets' overnight gains. MKTS/GLOB
* Silver XAG= jumped 2.6% to $29.68 per ounce, while
platinum XPT= dropped 0.9% to $988.76 and palladium XPD=
climbed 0.5% to $2,232.40.

DATA/EVENTS (GMT)
1230 US Non-Farm Payrolls July
1230 US Unemployment Rate July
1900 US Federal Reserve issues Consumer
Instalment Credit for June

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