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Gold Again Hits $2,000 as U.S. Yields Tumble 

CommoditiesAug 17, 2020 03:13PM ET
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© Reuters.

By  Barani Krishnan

Investing.com - Gold prices jumped more than 2% on Monday, briefly recapturing the $2,000 an ounce perch for the first time in nearly a week, as a renewed drop in Treasury yields pushed investors back toward safe-havens.

It was a remarkable turnaround for an asset that just about a week appeared to have lost its proverbial “golden touch”.

Gold’s “Black Tuesday” from last week wiped 5%, or $93, from the most-active gold futures contract on New York’s Comex, after an intraday swing of $129. It was Comex gold’s worst one-day loss in seven years. Since then — and until Monday — trading in the yellow metal had been a game of pure nerves or, at best, high-powered chess.

With Monday’s rally, some analysts still weren’t sure if gold’s rally mode will stay without much of a give-back. The latest peak in December gold was almost $90 off its record high of nearly $2,090 from last week. Many gold bulls have a target of between $2,100 and $2,300 for gold over the next two months.

Benchmark December gold futures on Comex settled up $48.90, or 2.5%, at $1,998.70 after an intraday peak at $2,000.35. It was the first time gold had scaled $2,000 since the Black Tuesday-rout. The percentage gain on the day itself was the highest since April 22. 

The spot price of gold, which reflects metal for immediate delivery, lagged the gains in futures, rising by $36.04, or 1.9%, to $1,980.53 by 2:48 PM ET (18:48 GMT).

“Today, gold has broken past all immediate upper targets in finding its way from a low of under $1,940 to highs of just above $2,000,” said Sunil Kumar Dixit,” an independent chartist for the precious metal.  

“Yet, it’s possible that it may consolidate and trade range-bound unless it finds strong triggers to move higher,” Dixit said.

Those triggers will primarily be yields on the U.S. 10-Year Treasury note and the performance of the U.S. Dollar Index.

Yields on the 10-year note initially plunged 5% on Monday, before recovering to show a deficit of 3.8% late afternoon in New York. 

The dollar index, which pits the greenback against a basket of six currencies, was down to as low as 92.75 earlier in the day before stabilizing to 92.85.

Some news reports suggested that gold may have also drawn additional interest on Monday from evidence that top investor Warren Buffett has dipped his toes into gold mining stocks. A public filing of Warren Buffett’s Berkshire Hathaway Inc . (NYSE:BRKa) revealed that the conglomerate had taken a new stake last quarter in the world’s second-largest gold miner, Barrick Gold (NYSE:GOLD) Corp.

Silver, the second top draw in precious metals, also got a ride up Monday on the back of the gold rally.

September, the front-month silver contract on Comex, settled up $1.58, or 6%, at $27.67 per ounce. September silver hit a seven-year high of $29.915 last week, coming just short of the $30 targeted by many longs in the white-metal.

Gold Again Hits $2,000 as U.S. Yields Tumble 
 

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Comments (14)
Rana Hamid
Rana Hamid Aug 17, 2020 10:35PM ET
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Next Gold target👆 2000$ to 2300 Backdown 👇1900 to 1778
shaikh uzaif
shaikh uzaif Aug 17, 2020 7:44PM ET
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just wait n see gold hit soon 1900 1860 after touch 2001 100% sure
Agus Ludyanto
Agus Ludyanto Aug 17, 2020 3:38PM ET
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next target 2300..
eddie glass
eddie glass Aug 17, 2020 3:13PM ET
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so buffet sold his airline stocks at the low and is chasing gold miners after they have massively pumped? starting to think this guy has dementia like biden and is huffing too much of the CNN
Fabio falec
falec Aug 17, 2020 3:13PM ET
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Well, sometimes you are wrong. He mentioned that he has been wrong with regards to airlines. But, gold has run a lot already, but it can still thrive in this environment. I wish I have been as bad as Buffet.
Jay On
Jay On Aug 17, 2020 3:13PM ET
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Gold has a lot more room to run. Don’t sleep.
Barani Krishnan
Barani Krishnan Aug 17, 2020 3:13PM ET
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Eddie Glass, I really hope your portfolio returns are as big as your M.O.U.T.H.
apc apc
apc apc Aug 17, 2020 12:38PM ET
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go go Goldie
Ndangariro Maketiwa
Ndangariro Maketiwa Aug 17, 2020 12:04PM ET
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Gold is golden in 2020.
Rana Hamid
Rana Hamid Aug 17, 2020 12:02PM ET
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$2000 to 2100$ Gold this week
ritesh gupta
ritesh gupta Aug 17, 2020 12:02PM ET
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sure brother
Madhur Singhal
Madhur Singhal Aug 17, 2020 11:53AM ET
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gold gold run away, 2020 is there anyway, you are bright, please show us your might.
PLAY DIRTY
PLAYDIRTY Aug 17, 2020 11:03AM ET
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Love you Buffet
perplexed76 .
perplexed76 . Aug 17, 2020 10:53AM ET
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(jump, jump) Fed will save you (jump, jump) Everything have to jump. What's wrong with Dow?
trau truu
trau truu Aug 17, 2020 10:48AM ET
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you are my love you are my heart eat 'em up baby
Peter BullMarket
Peter BullMarket Aug 17, 2020 10:44AM ET
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Thanks Warren Buffett! You are the best Grandma ever
Wahab Iqbal
Wahab Iqbal Aug 17, 2020 10:42AM ET
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Warren buffet is the realman
Joseph Mccoy
Joseph Mccoy Aug 17, 2020 10:42AM ET
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Interesting.
 
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