Gold Tops $2,000 an Ounce for the First Time

Published August 5th, 2020 - 06:00 GMT
Gold Tops $2,000 for the First Time
The precious metal hit the symbolically important benchmark near 1615 GMT before retreating somewhat then crossing the line again about 30 minutes later. (Shutterstock)
Highlights
Gold prices have risen more than 30 per cent this year as the coronavirus outbreak has weakened the economy.

Gold prices hit $2,000 an ounce for the first time on Tuesday, the latest surge in a commodity seen as a refuge amid economic uncertainty.

The precious metal hit the symbolically important benchmark near 1615 GMT before retreating somewhat then crossing the line again about 30 minutes later.

Spot gold prices rose $18.5543, or 0.94 per cent, to $1,995.25 an ounce. Earlier, spot gold was bid at $2,000.11 an ounce.

In Dubai, 24k gold prices surged to record high of 242.25 per gramme while 22k and 21k soared to Dh227.50 per gramme and 217.25 per gramme, respectively. The yellow metal also crossed Dh2,000 per ounce price on Tuesday.

"The price of gold has consistently shown a skyward movement and has emerged as a preferred investment option," TS Kalyanaraman, chairman and MD of Kalyan Jewellers, told Khaleej Times.

Gold prices have risen more than 30 per cent this year as the coronavirus outbreak has weakened the economy and clouded the global financial outlook. It is also supported by lower interest rates and safe-haven buying on concerns Federal Reserve policy and government stimulus are debasing the currency.

In an analysis Commerzbank said gold price is viewed as buying opportunities.

"Gold jewellery, while being a desired and accepted lifestyle purchase, is also the only asset that offers the benefit of liquidity and value appreciation," Kalyanaraman said.

To a question about resistance level for gold, he said everything from geopolitical issues to economic factors and internal tensions reflect in the price of gold.

"The resistance level is very tough to forecast as these external factors constantly create a new base level," he said.


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