{"id":1197021,"date":"2020-07-21T12:02:28","date_gmt":"2020-07-21T17:02:28","guid":{"rendered":"https:\/\/www.mining.com\/?p=1030331"},"modified":"2020-07-21T12:02:28","modified_gmt":"2020-07-21T17:02:28","slug":"gold-price-hits-nine-year-peak-on-stimulus-talks","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1197021","title":{"rendered":"Gold price hits nine-year peak on stimulus talks"},"content":{"rendered":"

Gold prices continued to ascend<\/a> on Tuesday, reaching their highest levels in nine years, as a softer US dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies provide further support for the safe-haven metal.<\/p>\n

Spot gold rose 1.2% to $1,839.58\/oz by 11:30 a.m. EDT, having touched the $1,840\/oz mark earlier in the session. US gold futures for August delivery advanced 1.3% to $1,840.80\/oz after hitting $1,843.80\/oz earlier, the highest for a most-active contract since September 2011.<\/p>\n

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Spot gold is one of this year\u2019s best performing assets, with prices up almost 20%<\/p>\n<\/blockquote>\n<\/figure>\n

\u201cGold is deriving strength from a broadly weaker dollar despite the improving market mood,\u201d FXTM analyst Lukman Otunuga told Reuters<\/a><\/em>. The dollar eased 0.1% against major currencies after touching a more than four-month low.<\/p>\n

Gold\u2019s resilience also defied a gain in global equities on the European Union\u2019s historic 750 billion euro ($857 billion) stimulus plan<\/a> and hopes for coronavirus vaccines.<\/p>\n

Gold is finding support from discussions about new fiscal stimulus, UBS analyst Giovanni Staunov told Reuters.<\/a> Widespread stimulus tends to support gold because the metal is widely viewed as a hedge against rising prices and currency debasement.<\/p>\n

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Revealed in a recent poll by Reuters<\/a><\/em>, gold prices are expected to push towards record highs over the next 18 months as the coronavirus crisis encourages investors to hoard the metal as a hedge against possible turmoil in the wider markets.<\/p>\n

The poll of 42 analysts and traders returned a median forecast for gold to average $1,713\/oz in 2020 and $1,800\/oz in 2021 \u2013 a significant rise from projections of $1,639\/oz and $1,655\/oz in a similar survey back in April.<\/p>\n

\u201cThe more uncertainty over the control of the virus and by association the global economy, the more bullish for gold,\u201d said StoneX analyst Rhona O\u2019Connell<\/a>, adding that prices could reach record levels above $2,000 in 2021.<\/p>\n

Spot gold is one of this year\u2019s best performing assets, with prices up almost 20% and above $1,800\/oz for the first time since 2011.<\/p>\n

Silver run keeps running <\/h2>\n

As with gold, the price of silver also continued its ascension and clinched multi-year highs on Tuesday. Spot silver gained 5.5% to $21.01\/oz and reached its highest point since July 2016.<\/p>\n

\u201cSilver is starting to outperform gold here,\u201d IG Markets analyst Kyle Rodda<\/a> told Reuters, pointing to increased appeal for precious metals generally. \u201cOn top of that, there\u2019s likely to be an element of silver catching a bit on a rebound in global industrial activity.\u201d<\/p>\n

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The metal, used in manufactured products ranging from solar panels to electronics, is receiving an added boost from supply concerns and bets on a rebound in industrial demand on top of the monetary policies that have helped to lift gold.<\/p>\n

The two metals are the top performers in the Bloomberg Commodity Index<\/a> this year as investors clamor for insurance against further economic fallout from the virus.<\/p>\n

Even after recent gains, banks and traders are still predicting silver to climb even higher. Citigroup said in a report<\/a> this week that it sees prices rising to $25 in the next six to 12 months, with the potential for $30 based on the bank\u2019s bull case.<\/p>\n

(With files from Bloomberg and Reuters)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Gold surpassed the $1,840\/oz mark earlier in the session, reaching its highest since September 2011.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197021"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1197021"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197021\/revisions"}],"predecessor-version":[{"id":1197022,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197021\/revisions\/1197022"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1197021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1197021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1197021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}