Gold just hit a new record high as traders pile into the so-called safe-haven asset on hopes that another US coronavirus stimulus bill is coming soon.
Spot gold rose as much as 1.2% to $2,000.58 an ounce on Tuesday before paring some gains. “Gold has cleared the $2000 level and it might not be done as Treasury yields continue to slide,” said Edward Moya, senior market analyst at OANDA.
A new stimulus bill could add extra liquidity to markets and weigh on rates, which would support the precious metal further.
Gold has surged nearly 32% year-to-date. It has rallied amid the coronavirus pandemic, supported by a weak US dollar, low yields, as well as fiscal stimulus.
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