Gold price recovers from worst week since March
Gold rebounded from its worst weekly performance in nearly five months as a weaker dollar and pullback in US treasury yields bolstered investor demand for safe-haven assets.
Spot gold advanced 1.7% to $1,980.74 per ounce by 2:45 p.m. EDT on Monday. Gold futures for December delivery jumped 2.1% to $1,991.20 per ounce after briefly crossing the $2,000 an ounce mark earlier in the day.
Gold investors also received a boost after a regulatory filing disclosed Berkshire Hathway’s new 20.9 million share investments in Barrick Gold –the world’s second-largest gold miner.
Bullion — which has risen by more than 30% this year — has benefitted from the ultra low interest rates and widespread stimulus measures used to keep economies afloat during the covid-19 pandemic.
Investors are now awaiting the minutes from the US Federal Reserve’s last policy meeting, which would indicate the next moves for the precious metal.
“The market expects the Fed to be very supportive, we’ll be above $2,000 per ounce before Wednesday’s Fed minutes, and north of $2,250 by the end of year,” Bob Haberkorn, senior market strategist at RJO Futures, told Reuters
“Considering, we still expect real rates to eventually resume their fall, should headwinds shift to tailwinds, we could see precious metals resume their upward trajectory with a substantial amount of strength,” TD Securities said in a note.
source: Mining.com
