By Barani Krishnan
Investing.com - Gold finished the third quarter up more than 4% as a run to record highs above $2,000 delivered gains for longs in the yellow metal despite volatility induced by the strong dollar.
U.S. gold for December delivery settled at $1, 895.50 an ounce on New York's Comex, up $7.70, or 0.4% on the day.
For September though, the benchmark futures contract was down 4.2%, while for the quarter, it was up by a similar amount..
Comex gold hit record highs of nearly $2,090 on Aug. 7 on expectations of a second round of U.S. coronavirus-related spending of more than $2 trillion. But that plan hit a political hitch and the dollar has sprung higher since, forcing gold off its highs and into a time of greater volatility.
Treasury Secretary Steven Mnuchin reignited hopes for a stimulus deal on Wednesday, saying the White House was holding talks again with rival Democrats in Congress.
“Gold is back above $1,900 and that could stick as stimulus prospects seem to be growing globally,” Ed Moya, analyst at New York’s OANDA.
The Dollar Index, or DX, which tracks the greenback’s performance versus six currencies, was flat at 93.92 on Wednesday, after a two-month high of 94.795 on Friday. The DX gained 2% for September while sliding 3.5% for the quarter.