SMM: COMEX gold futures closed at a record high again on Tuesday as weakening consumer confidence in the United States boosted safe-haven demand for gold.
Comex August gold futures closed 0.7 per cent higher, or $13.6 per ounce, at 13:30 in New York time, settling at $1944.60 an ounce, the highest close on record for a major contract. The contract hit $1974.70 in intraday trading, breaking the intraday record high set on Monday, but the futures price also fell to a low of $1900.20.
The US consumer confidence index fell more than expected in July as the number of new infections surged nationwide, threatening the US economy to recover from an unprecedented recession caused by the epidemic.
The Conference Board's consumer confidence index fell to 92.6 in July, compared with a market estimate of 94.4, compared with a revised 98.3 in June, the American Consultative Conference said on Tuesday.
In addition, the dollar index rebounded from a two-year low on Tuesday, but looks likely to weaken further amid a surge in coronavirus cases in the US.
Investors are awaiting the outcome of a two-day Fed policy meeting on Wednesday after the Fed announced that it would extend a number of lending facilities until the end of the year.
The stock market fell after the $1 trillion aid package announced by Republicans in the US Senate was opposed by Democrats and Republicans.
Goldman said the price of gold was expected to rise to $2300 an ounce over the next 12 months, adding that concerns about how long the dollar could remain a reserve currency had begun to emerge.
"when there is strong momentum coming in, there are a lot of speculators who want to make a quick profit," said MichaelMatousek, chief trader at U.S.GlobalInvestors.
"the fundamentals have not changed, and inflationary deficits and low interest rates will remain, so there is no reason not to hold gold, really."
"the magnificent gold rally continues," JasonRotman, director of EverplusCapital, said in an email. "safe haven demand for gold has increased, and I still firmly believe that in the current environment, the next target price for gold is $2200."
"of course, there is another side of speculation. The factor that causes the gold price to be unable to reach 2200 US dollars is the improvement of COVID-19 's widespread spread and the fact that the economic growth rate is better than expected again. " "but at present, this is a protracted war."
So far this week, gold is still up, up 26 per cent for the year.
For other precious metals, the September silver futures contract fell 20. 1 cents to settle at $24.300 an ounce.
October platinum futures rose $19.60 to settle at $986.20 an ounce.
September palladium futures fell $4.20 to settle at $2365.50 an ounce.
In addition, COMEX9 copper for monthly delivery closed up 2 cents at $2.9175 a pound.
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