COMMODITIES: Gold Again Tests US$2,000 Mark on Weaker Dollar COMMODITIES: Gold Again Tests US$2,000 Mark on Weaker Dollar, Grim Economic Reports
09:24 AM EDT, 07/31/2020 (MT Newswires) -- Gold tested the US$2,000 per ounce mark again on Friday on a lower dollar and weak economic reports.
Gold for December delivery was last seen up US$26.10 to US$1,992 per ounce, touching a record US$2,005.40 in overnight trading after falling back for the first time in 10 sessions on Thursday.
"Gold this morning has climbed to a new record high," Daniel Briesemann, an analyst with Commerzbank said in a note. " ... Up by nearly 11%, it is likely to chalk up its most pronounced monthly increase in more than four years
The rise comes as the U.S. dollar continues to weaken, falling to the lowest in more two years. The ICE dollar index was last seen down 0.01 to 93.01 points after earlier touching 92.55, the lowest since May, 2018.
The Unites States on Thursday said its economy contracted by a record 32.9% in the second quarter while initial jobless claims again topped 1.4 million, even as US$600 in special unemployment benefits expire as legislators argue over new stimulus measures, threatening further economic dislocation for the jobless.
European economies also remain weak, with Eurozone second-quarter GDP contracting by 12.1% quarter over quarter.