The yellow metal surged back again and climbed over the $2000 mark as the rising US-China tensions and weak dollar urged investors to look for a safe bet.
The US President, Donald Trump, escalated obstacles for Huawei Technologies, curbing the use of its commercial chips in the nation. The move is the latest reaction between the tit-for-tat war going between Beijing and Washington over the Hong Kong and COVID led by China issue.
Bullion has surged more than 30% in 2020, so far as the rising demand for a safe haven asset among the investors and traders keep increasing. Experts bet that the governments and central banks of the nations, hit by the corona crisis, will cushion the economies with several packages. Bullion hit a new all-time high of $2075.47 on 7th August, before falling for the first time in two months as the US Treasury uplifted the yields.
Gold price is further boosted by high pressure on the greenback, geopolitical instability and uncertainty, and mulling over new rising virus hotspots. The US Dollar Spot Index slumped 0.3%, touching the lowest point since 2018, with Spot gold rising for the second consecutive day, reaching $2008.13, increasing 1.2%, at 10.06 AM in the UK. The white metal, Silver, touched $28.216, rising 2.7%.
Analysts predict the gold to rise further as no signs of recovery is showing in the economy, with real interest rates remaining below zero and traders expecting further several stimulus packages till 2021.