SMM: COMEX gold futures hit a nine-year high on Tuesday as silver broke the $20 an ounce threshold to its highest level in more than six years as the dollar sold off and the market expected stimulus to intensify to help economies hit by the virus pandemic recover.
Comex August gold futures rose 26.50 U.S. dollars, or 1.5 percent, to settle at $1843.9 an ounce at 13:30 new York time (01:30 on July 22nd).
BartMelek, head of commodities strategy at TD Securities (TDSecurities), said: "the dollar fell because the global situation looked slightly better."
"interest rates on the yield curve have fallen across the board, which has once again become another factor supporting gold prices," he said. "
EU leaders reached a "historic" agreement on a massive post-epidemic economic stimulus package before dawn on Tuesday, nearly five days after a thorny summit.
Summit President Michelle Obama tweeted that "an agreement has been reached" after a plenary meeting of 27 leaders reached an agreement on 0315GMT.
Michelle proposed that of the 750 billion euro recovery fund, 390 billion euros should be non-repayable allocations, lower than the 500 billion euros originally proposed, with the rest of the loans to be repaid.
The dollar hit its lowest level in more than four months. Members of the U.S. Congress will discuss a new stimulus package this week.
Gold prices are set to hit record highs in the next 18 months, according to the survey, but weak jewellery sales in Asia and prospects for economic recovery will hamper further gains.
In addition, (PanAmericanSilver), a precious metals mining company, is suspending operations at its Huaron and Morococha silver mines in Peru for maintenance because several workers tested positive for the new crown virus.
For other precious metals, September silver futures rose $1.365 to settle at $21.557 an ounce.
Platinum futures jumped $61.00 in October to settle at $918.9 an ounce.
September palladium futures rose $78.80 to settle at $2188.20 an ounce.
In addition, COMEX9 copper for monthly delivery closed up 4.25 cents at $2.9580 a pound.
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