Gold Climbs Even as Dollar Springs Back; New Run Over $2,000 Seen

imageCommodities4 hours ago (Aug 03, 2020 02:40PM ET)

(C) Reuters.

By Barani Krishnan – Gold eked out a modest gain on Monday despite the dollar rebounding for a second straight session. But the record-busting yellow metal was still on course for new targets above $2,000 an ounce, analysts said.

“The dollar bounce has certainly taken the edge off gold, although not before it took another run at $2,000 early in the session,” said Craig Erlam, senior market analyst at New York-based online trading platform Oanda.

“This feels like a very natural place for gold to be experiencing some profit-taking after hitting a new record high last week but there’s nothing to suggest we’re going to see a larger pullback at this stage.”

Spot gold, a real-time indicator of trades in bullion, was down 20 cents, or 0.01%, at $1,975.91 by 2:35 PM ET (18:35 GMT). Bullion gained almost 11% in July.

On New York’s Comex, the October futures contract settled 80 cents, or 0.04%, at $1,985.20. But the more active December gold on Comex hit $2,009 shortly after trading began for the new week in Asia, before settling up 40 cents at $1,986.30. In July, Comex gold rose nearly 10%.

For the year, bullion and gold futures are both up nearly 30%.

On the forex front, the Dollar Index, which pits the greenback against six competing currencies, rose 0.25% after a 0.34% gain on Friday. In July, the Dollar Index lost 4%, its biggest monthly loss since September 2010.

“If the dollar continues to experience downside pressure, it may just be a matter of time before $2,000 comes under considerable pressure,” Erlam said.

Gold Climbs Even as Dollar Springs Back; New Run Over $2,000 Seen

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