Gold Higher on $ Weakness As Investors push up stocks COMMODITIES: Gold Trading Higher on Dollar Weakness As Investors Continue to Push Up Stocks
09:19 AM EDT, 07/06/2020 (MT Newswires) -- Gold prices rose early on Monday despite a higher risk appetite among investors as the U.S. dollar weakened.
Gold for August delivery was last seen up US$4.60 to US$1,794.60 in Comex electronic trade.
The rise comes despite a move to risky equities worldwide, with most Asian and European stock markets gaining on Monday while futures point to a higher open for U.S. exchanges. Positive economic data as economies recover from lockdowns and liquidity measures from central banks have supported rising stocks.
However those liquidity measures have also supported gold, which last week pushed to multi-year highs as exchange-traded funds boost gold purchase and the dollar weakens.
"In our opinion it will probably only be a question of time before gold rises above the $1,800 mark. The front-month gold futures contract had already traded briefly above it last week," Daniel Briesemann, an analyst with Commerzbank, said in a note.
The U.S. dollar dropped, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.5 to 96.67 points.