Sunday, September 27, 2020

In gloomy economic scenario, gold continues to glitter

Aug 01. 2020
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By THE NATION

The price of gold contracts in the New York Market rose on Friday night (July 31), amid increase in demand from investors for the metal as a safe haven asset amid concerns about the global economy in the aftermath of Covid-19.

The Comex (Commodity Exchange) gold to be delivered in December increased by $19.1, or 0.97 per cent, to close at $1,985.9 per ounce. The Comex gold price rose by 4.7 per cent in this week, and 10.3 per cent in July 2020.

The highest point the price reached on Friday of $2,005.40 per ounce was too fast for this year, according to those analysts.

Analysts said that the gold price was supported by the weakening dollar. The currency this week was at the lowest point in the past two years, dropping by 4 per cent over the last month.

Analysts said that another factor to support the dollar was the low interest rate frozen by the Fed.

From the beginning of 2020, gold price has risen by 30 per cent.

According to analysts, numerous investors decided to purchase the metal due to their concerns about the Covid-19 crisis, which has infected a total of over 17.5 million people around the world. Total cases in the US was more than 4.6 million, with over 155,000 deaths.

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