Silver prices scale new high, crosses Rs 75000 per kg

Daniel Fowler
August 6, 2020

Shifts in the United States bond market have also underpinned gold's meteoric ascent, with an added lift from a weaker dollar.

As the Covid-19 pandemic has roiled markets, gold has gained almost 35% this year and is one of 2020's best-performing assets.

"Gold has been on an up move for last few days, supported by persistent weakness in US dollar, strong investor interest and safe haven buying amid rising virus cases globally and increased US-China tensions", Kotak Securities said in a note.

Oil prices rose to their highest since early March on a big drop in USA crude inventories and on the weak dollar, which was pushed lower by data showing euro zone business activity returned to modest growth in July.

The Aussie was last up 0.3% at $0.7184 while the common currency was inching toward a two-year high at $1.1812, buttressed by hardening perception that the U.S. rebound is lagging Europe.

Concerns that the USA economy is stalling amid a surge in coronavirus cases has increased calls for more fiscal aid, a move stock investors have welcomed.

A surprise quarterly profit from Walt Disney Co and a slate of upbeat results from healthcare companies lifted sentiment on Wall Street, while European shares rose on a slate of positive results.

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The deal also allows the federal government to acquire additional doses that would be able to vaccinate up to 300 million people. Novavax was given $.16 million under the federal government's Operation Warp Speed program for the development of the vaccine.

On Thursday, as worldwide gold prices stayed near all-time, rates in India edged closer to Rs 56,000 per 10 grams.

In other markets, platinum October futures closed at the highest since February on the New York Mercantile Exchange, while palladium also rose. Emerging markets stocks rose 1.2%.

USA private payrolls growth slowed sharply in July, pointing to a loss of momentum in the labour market and overall economic recovery as new Covid-19 infections spread across the country. Even after topping $2,000, there are plenty of forecasters projecting further substantial price gains. Real yields on 10-year Treasuries have collapsed below zero.

Japan's Nikkei was off 0.86% while Australia's benchmark index slipped 1%.

The Japanese yen strengthened 0.1% versus the greenback at 105.61 per dollar. For example, Goldman Sachs Group Inc. believed gold could climb to $2,300 as investors are "in search of a new reserve currency", while RBC Capital Markets puts the odds of a rally to $3,000 at 40%.

More central bank support is also dragging US Treasury yields lower, led by the long-end of the curve, and helping "fire-up gold's glitter", they added.

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