Gold set for best month in nearly 4-1/2 years as weak US data dents dollar

  • Date: 31-Jul-2020
  • Source: Khaleej Times
  • Sector:Oil & Gas
  • Country:UAE
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Gold set for best month in nearly 4-1/2 years as weak US data dents dollar

US gold futures rose 1 per cent to $1,961.30.





Gold rose on Friday en route to its best month in nearly 4-1/2 years as the dollar slid further after dismal US data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal

Spot gold was up 0.4 per cent at $1,967.53 per ounce by 0458 GMT after snapping a nine-session winning streak on Thursday. US gold futures rose 1 per cent to $1,961.30. The precious metal is priced at Dh238.50 for 24K, Dh224.25 for 22K and Dh183.25 for 18K, per gram in Dubai.

The US dollar fell to a two-year low and was on course for its worst month in a decade, making bullion cheaper for investors holding other currencies.

Apart from US data showing the deepest economic contraction in at least 73 years in the second quarter, and a rise in unemployment benefits, the dollar was also hurt as President Donald Trump raised the idea of delaying the Nov. 3 presidential election.

"The weak Q2 GDP also underscores the point of a weak economy, and investors seeking refuge in gold," said National Australia Bank economist John Sharma.

A deterioration in the coronavirus situation, escalation