Gold vaults to highest since October 2012 as dollar stumbles
· Gold prices surged to their highest since October 2012 on Tuesday, driven by weakness in the U.S. dollar and widespread monetary stimulus packages by central banks as a jump in coronavirus cases dented the economic outlook.
· Spot gold climbed 0.7% to $1,765.99 per ounce by 01:54 p.m. ET (1754 GMT), after hitting $1,768.96, its highest since October 2012. U.S. gold futures settled up 0.9% at $1,782 per ounce.
· "The tsunami of stimulus coming in from everywhere is not only inflationary but also painting a weaker picture for the economy and making gold look attractive," said Edward Meir, analyst at ED&F Man Capital Markets.
· Gold has gained nearly 16% this year, supported by global stimulus measures since the non-yielding metal is considered a hedge against inflation and currency debasement.
· The dollar was down 0.5% at 96.60 against a basket of currencies, making gold cheaper for non-U.S. currency holders.
· More than 9.14 million people have been reported infected by the coronavirus globally and 473,031 have died, a Reuters tally showed on Tuesday.
· Gold's gains came despite a rise in equities driven by encouraging economic data and after U.S. President Donald Trump tweeted that the U.S.-China trade pact was "fully intact".
· "Gold's biggest enemy right now is if other markets grab attention and capital," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"Barring a poor close under $1,750 in the coming days, the October 2012 high of about $1,800 should only be a matter of time, a week, perhaps less."
· Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 3.21 tonnes to 1,169.25 tonnes on Monday, a level last seen in April 2013.
· Palladium was little changed at $1,938.46 per ounce, platinum was up 0.8% at $828.73 per ounce and silver rose 0.6% to $17.93 per ounce.
Reference: CNBC
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