Reuters | Aug 06, 2020 17:42
* Gold up 34% so far this year
* Silver tops more than 7-year peak
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds comments, and updates prices)
By Brijesh Patel
Aug 6 (Reuters) - Gold prices raced towards a record high on Thursday as dismal U.S. jobs data hammered the dollar and intensified worries about a recovery in the pandemic-ravaged global economy.
"There are real concerns about whether the global economic recovery will continue with infection cases continuing to rise in the U.S.," said Harshal Barot, research consultant for South Asia at Metals Focus.
"Those concerns have now intensified, raising doubts that whatever recovery we had in the last couple of months would not last, leading to safe-haven buying. Broadly, inflation expectations have also started to pick up slightly."
Three Federal Reserve policymakers warned the pandemic would continue to hurt the U.S. economy, with local cases topping 4.7 million. sombre outlook sent the dollar index .DXY to a more than two-year low, with data on Wednesday showing U.S. private payrolls growth slowed sharply last month. MKTS/GLOB
"The only real cure to claw back some economic dignity is that global interest rates remain low for as far as the eye can see and even redoubled amounts government stimulus," Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note. has rallied over 34% this year as it's considered an asset that should hold its value while the pandemic and central bank money printing erode the value of others. real yields have also made the non-interest bearing metal an attractive investment, analysts said. US/
However, technical indicators point to signs of exhaustion, said DailyFx currency strategist Ilya Spivak, adding "we might get a pause relatively soon, at least to consolidate."
Silver XAG= jumped 2.5% to $27.69 per ounce after hitting its highest since April 2013.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.