Tuesday, spot gold rose to a record above 2,000oz as investors continue to seek safe-haven for their assets due to economic and geopolitical risks.
Gold has rallied in the past year as the C-19 coronavirus chaos prompts unprecedented amounts of aid/relief/stimulus to bolster economies, including lower rates, which are a boon for non-interest-yielding gold.
Simmering geopolitical tensions including a massive explosion at Lebanon’s main port Tuesday are also boosting demand.
Spot gold rose 1.7% at 2,009.61oz, and traded at 2,008.55 as of 2:22p. in New York. Bullion for immediate delivery surged 11% in July, the biggest monthly gainer since Y2012.
The most-actively traded gold futures on the COMEX also reached a record Tuesday before settling at 2,021.
Spot silver rose 6.7% at 25.93oz, spot platinum and palladium also advanced.
Holdings in both gold- and silver-backed ETFs have risen to records in the past week on concern about the fallout from the medical emergency chaos.
Investors are worried about the global outlook that worldwide holdings in gold-backed ETFs now stand behind only the official US reserves of bullion after they surpassed Germany’s holdings.
Investors are closely monitoring efforts in Washington to negotiate a new aid/relief/stimulus package that many see as Key to keeping the economy afloat as the C-19 coronavirus curbs business activity.
What Senator Chuck Schumer (D-NY) said suggests we will get a package and reverse the stoppage of benefits, meaning the Treasury will borrow trillions more.
As gold marks new highs we now see gains. I am raising my target to 3,000oz as the rally extends.
Have a healthy day, Keep the Faith!