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Gold Futures’ Front-Month Breaks Beyond $2,000

CommoditiesAug 04, 2020 11:32AM ET
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By Barani Krishnan

Investing.com - U.S. gold futures’ front-month contract finally pierced the $2,000-an-ounce mark on Tuesday as the dollar resumed its fall after a brief respite, sending safe-haven seekers back toward the yellow metal.

The October gold contract on New York’s Comex settled up $35.20, or 1.8%, at $2,001.20. Its session peak of $2,014.15, meanwhile, set an all-new high for a benchmark gold futures contract on Comex.

Notwithstanding that, Comex’s December gold, which has attracted even more volume and open interest than October futures, surged even higher. December gold on Comex hit a record high of $2,027.30 before settling at $2,021, up $34.70 or 1.7% on the day.

“Gold is catching fire again on stimulus bets, some dollar weakness, and as risky assets get a boost on improving economic data and improving virus outlook,” Ed Moya, analyst at online trading platform OANDA said.

“Gold is now the favorite safe-haven as Treasury yields continue to slide.  Real yields are deeper in negative territory and the U.S. could be one bad labor report from seeing the 10-year Treasury yield fall towards the March 9th record low of 0.318%.”

While gold is up more than 30% on the year, its rally took a backseat in recent days as the dollar climbed in anticipation of a positive U.S. nonfarm-payrolls report for July, due on Friday.

Doubts Now Over Friday’s Nonfarm Payrolls Data

Both the May and June issues of the nonfarm payrolls report had outsized U.S. jobs recovery from the Covid-19, thanks to the Labor Department’s revised methodology. For July, analysts polled by Investing.com had an initial consensus for a 1.6 million-jobs gain — a forecast that boosted the dollar.

But even if the jobs data surprised to the upside, some say the Dollar Index, which pits the greenback against a basket of six competing currencies, will face more serious headwinds ahead.     

“Overall, the U.S. dollar continues to look like a buy-on-dips scenario in the near-term,” said Jeffrey Halley, OANDA’s Sydney-based analyst. 

Adds Halley:

“The price action in the bigger picture though, looks like a bullish correction to a longer-term bear market. A tentative global recovery, combined with negative U.S. real yields, multi-trillion-dollar deficits, bottomless free money from the Federal Reserve, along with electoral uncertainty Covid-19 concerns, does not make a compelling case for dollar strength.”

Silver, which rose alongside gold through most of July, was also swept up in Tuesday’s rally.

The white metal’s front-month contract on Comex, September, settled up $1.61 cents, or 6.2%, at $26.03 per ounce. September silver earlier hit a one-week high of $26.18.

Gold Futures’ Front-Month Breaks Beyond $2,000
 

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Comments (21)
Kristo ivanov
Kristo ivanov Aug 05, 2020 4:33AM ET
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¢50000
Kristo ivanov
Kristo ivanov Aug 05, 2020 2:45AM ET
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pool $
Plopseven Schwartz
Plopseven Schwartz Aug 04, 2020 11:06PM ET
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When gold goes parabolic, the US Dollar will lose reserve currency status.
humayoun nabi
humayoun nabi Aug 04, 2020 3:00PM ET
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GOLD will strike 5000 end of this year
peter neal
peter neal Aug 04, 2020 1:27PM ET
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Biden Democratic Senate Socialism Tear Down Walls Free Everything Spend till Second Great Depression / all in a year
Darryl Parvin
Darryl Parvin Aug 04, 2020 1:27PM ET
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Biden is to the right of Richard Nixon. He's signed off on every neocon war and Millionaire tax cut presented to him.
peter neal
peter neal Aug 04, 2020 1:27PM ET
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Was
Musical Critic
Musical Critic Aug 04, 2020 1:21PM ET
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As confidently indicated earlier, gold did in fact break 2k barrier with ease.. Mark my words, take a snapshot.. it will break 3k by end of the year.
Nhan Tran Bao
Nhan Tran Bao Aug 04, 2020 1:21PM ET
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Lack of vol in the trade. A drop to 1800 is waiting.
gk trick with bikram
gk trick with bikram Aug 04, 2020 1:21PM ET
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sir have you any best indicater for equity share
Kristo ivanov
Kristo ivanov Aug 04, 2020 1:13PM ET
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13.7801
Kristo ivanov
Kristo ivanov Aug 04, 2020 1:13PM ET
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23.673
Kristo ivanov
Kristo ivanov Aug 04, 2020 1:13PM ET
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247.89
Kristo ivanov
Kristo ivanov Aug 04, 2020 1:12PM ET
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45.095
Nathan Nandap
Nathan Nandap Aug 04, 2020 12:59PM ET
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2020 and 2040 next
Kristo ivanov
Kristo ivanov Aug 04, 2020 12:59PM ET
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Hash Hash
Hash Hash Aug 04, 2020 12:50PM ET
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2180....2350....3369....5000
Vip Homi
Vip Homi Aug 04, 2020 12:48PM ET
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the market is going crazy but not for long .. a sudden drop is approaching .. dont let the speculations fool you
Renno Kullerkupp
Renno Kullerkupp Aug 04, 2020 12:48PM ET
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you mean stock market, right?
Kristo ivanov
Kristo ivanov Aug 04, 2020 12:05PM ET
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Zone game 777 $
Steven Grose
Steven Grose Aug 04, 2020 11:52AM ET
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At some point, gold will start averaging a march upward of $100/month. The miners and royalty stocks will shine as they start getting more money to start more shifts, buy more mining equipment, prepare more mine openings, etc.
AIM Investor Journal
AIM_IJ Aug 04, 2020 11:50AM ET
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Best value gold and precious metal stocks listed on London stock market.  1) HUM (120koz/pa) 2) TSG (40koz/pa) 3) AAZ (80koz/pa) Insane valuations. Also recommend GPM, RSG, AAU, CEY, HOC, CGH, SRB, SLP, GFM
HJ Lee
HJ Lee Aug 04, 2020 11:44AM ET
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Gold will hit to 2100 within this month.
Playzor Andersson
Playzor Andersson Aug 04, 2020 11:44AM ET
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*week
montell jordon
montell jordon Aug 04, 2020 11:42AM ET
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historical win for Gold this year all thanks to #lockdownrestrictions
Wankel YU
Wankel YU Aug 04, 2020 11:38AM ET
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carzy,. when will fed *****turkey and eat all gold from her?
Hamza Lewal
Hamza Lewal Aug 04, 2020 11:38AM ET
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expecting drop to 1976
Large Father
Large Father Aug 04, 2020 11:35AM ET
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nice! now if only all my miner stocks would go up in value
 
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