Spot Gold Smashes Through $2,000 With Haven Seekers Piling In

5 August 2020, 12:40 am ACST Updated on 5 August 2020, 3:58 am ACST

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Growing economic, political risks boost precious-metal demand

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Hopes for further U.S. stimulus measures also help gold buying

Gold Is a Structural Bull Market, Says Strategas’ Verrone

Spot gold soared to a record above $2,000 an ounce as investors continue to seek a haven for their assets amid daunting economic and geopolitical risks. Gold has rallied in the past year as the coronavirus pandemic prompts unprecedented amounts of stimulus to shore up economies, including lower rates, which are a boon for non-interest-yielding gold. Simmeringgeopolitical tensions -- including a massive explosion at Lebanon’s main port on Tuesday -- are also boosting demand. “People want safety, and safety right now is gold because Treasuries are not yielding up,” Bob Haberkorn, senior market strategist at RJO Futures, said by phone.

Spot gold rose as much as 1.7% to $2,009.61 an ounce, and traded at $2,008.55 as of 2:22 p.m. in New York. Bullion for immediate delivery surged 11% in July, the biggest monthly gain since 2012.

The most-actively traded gold futures on the Comex also reached a record on Tuesday before settling at $2,021.