SMM: COMEX gold futures rose to their highest level since September 2011 on Wednesday as central banks launched strong stimulus measures to mitigate its impact on the economy as investors sought to avoid the risk of a new coronavirus outbreak.
Comex August gold futures rose 10.70 U.S. dollars, or 0.6 percent, to settle at $1820.60 an ounce at 13:30 New York time.
DavidMeger, head of metals trading at HighRidgeFutures, said "it is supported by fiscal and monetary stimulus measures" and inflows into gold-backed exchange traded fund (ETF) and other investments.
"the continued injection of liquidity into the market continues to be the most prominent positive as the dollar has been weakening and supporting commodity prices, particularly gold and silver."
Gold prices have risen well this year as the global economy has been hit hard by the new crown pandemic. At present, more than 11.89 million people worldwide have been infected with the new crown virus.
Travel restrictions imposed by India, the world's second-largest gold consumer, have also hampered demand in an effort to stop the spread of the new crown virus.
"the increase in investment demand has offset the weakness in the spot market and spot ETPs," said SukiCooper, an analyst at Standard Chartered Bank (StandardChartered).
Gold holdings in (ETF), a gold-based exchange-traded fund, increased by 734 tonnes in the first half of 2020, more than in any previous year, the World Gold Council (WGC) said on Tuesday.
Gold prices continue to benefit from safe-haven demand, despite positive macroeconomic data and a rebound in risk sentiment. The weak dollar provides some support for gold, but the main driver is still real yields, "Copper added.
The dollar index fell and US stocks rose as investors weighed fears of a renewed outbreak and hopes of a rapid economic recovery.
For other precious metals, September silver futures rose 46.2 cents to settle at $19.161 an ounce.
October platinum futures rose $20.8 to settle at $884 an ounce.
September palladium futures fell $13.30 to settle at $1938.3 an ounce.
In addition, COMEX9 copper for monthly delivery closed 2.70 cents higher at $2.8240 a pound.
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