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Gold Up, Soars Past $2,000 In Historic First

Published 08/04/2020, 10:15 PM
Updated 08/04/2020, 10:19 PM
© Reuters.

By Bryan Wong

Investing.com - Gold was up on Wednesday morning in Asia, continuing to set record highs after breaking past the $2,000 per ounce mark.

Gold futures were up by 0.39% to $2,016.25 by 10:17 PM ET (3:17 AM GMT).

The price of gold continues to be supported by ongoing weakness in the dollar as well as light-at-the-end-of-the-tunnel of negotiations for a new COVID-related aid package in the U.S.

The greenback was down in Asia, giving up gains from Tuesday and adding to investor interest in the yellow metal.

At the same time, negotiations in the U.S. for a new aid package appear to be moving forward. A meeting between Democratic leaders and the White House on Tuesday ended on a positive note. Senate Majority Leader Mitch McConnell also said that he is prepared to support a deal even if he does not agree with parts of it.

"Wherever this thing settles between the president of the United States and his team that have to sign it into law, and the Democrat - not an insignificant minority in the Senate and the majority in the House - is something I'm prepared to support, even if I have some problems with certain parts of it,” McConnell told reporters.

Meanwhile, low interest rates continue to support the relentless march upwards of gold, with some experts predicting a possible negative interest rate environment.

“The slide of long-term Treasury yields is a good reminder that investor risk aversion remains and negative U.S. rates are still possible," DataTrek co-founder Nicholas Colas said in a note Monday.

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