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Aug. 4, 2020, 1:41 p.m. EDT

Gold ends Tuesday trade at record high well above $2,000 milestone

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By Mark DeCambre

Gold futures powered higher Tuesday, gathering momentum late in the session to finish at a fresh record as government bond yields headed lower and as the U.S. dollar's recent rebound receded somewhat, allowing the precious metal to make an assault on a record close above the $2,000 threshold. December gold gained $34.70, or 1.7%, to reach $2,021 an ounce. The moves came as a recent rise in the dollar abated, as gauged by the ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY +0.55% , a gauge of the greenback against a half-dozen major currencies. The rally for the dollar also came as the 10-year Treasury note yield continued to sink lower, reflecting appetite for haven assets, despite a record climb for equity benchmarks like the technology-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.34% . The 10-year Treasury note was recently yielding 0.52%. Lower yields can make gold, which doesn't offer a coupon, comparatively more attractive as a safety play. A weakening dollar, meanwhile, makes dollar-priced assets more appealing to overseas buyers. The sustained rally in gold has come as governments across the world have flooded their economies with financial aid to combat the COVID-19 pandemic. . And investors are betting that the uptrend for the yellow metal continues as the dollar weakens and interest rates remain around 0% in many parts of the world.

Read the full story:
Gold ends above $2,000 for the first time in history as U.S. dollar and bond yields recede

US : U.S.: ICE Futures U.S.
+0.50 +0.55%
Volume: 0.00
Jan. 15, 2021 1:27p
US : U.S.: Nasdaq
-44.73 -0.34%
Volume: 3.98M
Jan. 15, 2021 1:37p

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