All Rights Reserved Finance News 2020.
Gold heads for biggest monthly gain since Jan 2012 on rush to safety
Gold rose on Friday and headed for its biggest monthly gain in 8-1/2 years as being the impact of the worsening coronavirus pandemic on the Oughout.S. economy hammered the particular dollar, prompting investors to seek refuge in of these.
Spot gold was upward 0.8% at $1,975.30 an whiff by 0927 GMT, although U.S. gold options contracts rose 1.5% to $1,970.70.
Prices hit a record $1,980.57 on Tuesday and they are up nearly 11% up to now this month, their biggest monthly percentage gain since Jan. 2012.
Silver also climbed 2.4% to $24.11 an ounce, on course for its biggest monthly rise on files going back to 1982 – up over 30% – with additional impetus from hopes for a revival in industrial activity.
“Gold is more of a store of value right now than pretty much anything else,” said Michael Hewson, chief market analyst at CMC Markets UK.
The dollar , often seen by investors as a rival saferapidhaven, was on track for its biggest monthly drop in almost a decade. Its decline makes dollarrapidpriced gold cheaper for holders of other currencies.
Along with U.S. data showing the deepest economic contraction in at least 73 years in the second quarter and a rise in unemployment, the dollar was also hurt by President Donald Trump raising the possibility of delaying the November presidential election.
“Optimism about a V-shaped recovery is very much at risk and gold is seeing the benefit through that. It’s quite likely that we’ll see $2,000 an ounce in fairly short order,” Hewson said.
Gold’s latest jump has taken gains for the year to 30%, also driven by low interest rates globally amid widespread stimulus from central banks since the metal is considered a refuge from inflation and currency debasement.
Money managers allocated $3.9 billion into gold, the second largest weekly inflow ever, Bank of America said on Friday.
Elsewhere, platinum was flat with $903.09 and arrhes dipped 0.6% to $2,069.70.