Gold Near New Record High

Gold Near New Record

Gold stays near the new record high — above $2,050 an ounce — on a weaker dollar and speculation of new stimulus measures to combat the worsening pandemic and economic crisis. The yellow metal slipped a tad after this morning’s report from private-payrolls processor ADP showed July had lower-than-expected job numbers for July.

In July, ADP shows jobs increased by 167,000, well below the forecast of 1 million. On a more positive note, June’s payroll count was revised sharply upward to 4.3 million, however the jobs market is still far from recovering from the damage done in March and April.

Investors fled to the yellow metal as a hedge after the Dollar Index fell against major currencies and equities were mixed. Further direction is likely to come from key U.S. jobs reports this week — the ADP employment report for July on Wednesday, the weekly initial jobless claims report on Thursday and the unemployment report for July on Friday.

Gold futures climbed 1.8% Tuesday to settle at $2,021.00 an ounce on Comex after surging 10% in July. The December contract advanced 1% Friday. Currently, the December contract is up at $2,049.10, while the DG spot price is up $2,037.90.

Silver futures rose 6.6% Tuesday to settle at $26.03 an ounce on Comex. The September contract gained 7.5% in the first two days of the week after soaring 30% in July. Currently, the September contract is up at $26.82, while the DG spot price is up $26.85.

Republican and Democratic leaders in the White House and Congress have agreed to finalize a stimulus package by the end of the week to address unemployment and eviction restrictions triggered by the pandemic, with a vote in Congress to come next week, The Washington Post reported.

The virus known as COVID-19 has killed almost 700,000 people worldwide and sickened 18.5 million. About 26% of the cases — and 22% of the deaths — are in the U.S. The country has 4.77 million cases, more than any other nation.

Gold has surged in recent months as the pandemic has triggered an economic collapse, sending investors into haven assets. U.S. GDP contracted by 32.9% in the second quarter, compared with the year earlier, shattering all previous quarterly records, a report showed last week, Tens of millions of people have lost their jobs. Gold has also gotten a boost from a standoff between the U.S. and China.

U.S. Health and Human Services Secretary Alex Azar will visit Taiwan in the highest-level visit by a U.S. cabinet official in four decades. Following a crackdown by Beijing in Hong Kong, critics fear that the country’s leadership will turn its sights next on Taiwan. A trade standoff between the U.S. and China sent precious metals soaring in 2019.

In other markets, spot palladium increased 1.9% Tuesday to $2,162.00. It rose 7% in July. Spot platinum advanced 2.3% Tuesday $948.20 an ounce and gained 4.5% in the first two days of the week. It gained 8.3% in July. Currently, DG spot price for platinum is up at $972.40 and palladium is up at $2,191.10.


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