Gold flirts with record high on bleak economic outlook

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Eileen Soreng
* Gold up 35% so far this year
* Silver peaks over 7 years at $ 27.85 / oz
* Weekly jobless claims in the US due 12:30 p.m. GMT
* Interactive graph tracking the global spread of coronavirus: open tmsnrt.rs/3aIRuz7 in an external browser
(Add comments, details, update prices)
Aug 6 (Reuters) – Gold extended its rally on Thursday near yesterday’s record high as the COVID-19 pandemic darkens economic outlook and increases bullion
a safe haven, although the rapid pace of gains may encourage profit-taking.
Spot gold rose 0.5% to $ 2,050.27 an ounce at 9:28 a.m. GMT, after hitting an all-time high of $ 2,055.10 on Wednesday. US gold futures rose 0.7% to $ 2,063.50.
“The upward momentum for gold and silver is still quite solid at this stage as there is a lack of interest in other asset classes; many factors in the economy are still struggling, ”said Xiao Fu, an analyst at Bank of China International.
Gold’s gains also came despite a slight rise in the US dollar, which also benefited from weaker risk sentiment as investors waited for US employment data to confirm the state of the economy. largest economy in the world, even as Washington stalled on a major relief program.
Unemployment claims in the United States are due at 12:30 p.m. GMT, while payroll figures will be released on Friday.
Gold has risen about 35% this year, as it is seen as an asset that is expected to hold its value as the pandemic and the monetary footprint of central banks erode the value of others.
While the outlook for gold remains fundamentally positive, a correction is also increasingly likely, analysts said.
“The problem is, sometimes a story is so strong that a market bounces too fast for the fundamentals to justify, and when price dynamics start to slow down, those who came too late give up and sell early. This can inspire quite a quick technique. correction, ”said Kyle Rodda, analyst at IG Markets.
Silver, meanwhile, gained 2.8% to $ 27.78 an ounce after hitting its highest level since April 2013 at $ 27.85.
Platinum rose 0.9% to $ 975.80 and palladium rose 1% to $ 2,203.25.
(Reporting by Eileen Soreng in Bengaluru; editing by Emelia Sithole-Matarise)

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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