As greenback weakens, gold leaps to record high
LONDON (UK) – Gold leapt to a record high on Wednesday, going further past $2,000 in the face of a weak greenback, falling US Treasury yields and hopes of more stimulus measures.
A batch of positive earnings made European stocks rally and so did US equity futures. MSCI’s broadest index of Asia Pacific shares outside Japan touched a 6-1/2 month high, though the blue-chip Nikkei recorded a dip.
Rally of gold hogged the limelight as prices hovered around a record $2,044 per ounce.
Gold, which has soared more than 30% this year, is benefiting from uncertainty around the effects of the health crisis.
Falling US yields and weak dollar made investors seek alternative store of value, boosting the appeal of the yellow metal.
“What we’re seeing at the moment with the dollar, bond yields and gold are macro trades of concern – not just about the coronavirus but also about the fiscal cliff in the US,” said Seema Shah, chief strategist at Principal Global Investors in London.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field