Markets > Commodities

Gold up on safe haven demand

Xinhua News,CHICAGO
2020-08-06 02:45

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CHICAGO, Aug. 5 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose to another record high on Wednesday on safe haven demand.

The most active gold contract for December delivery rose 28.3 U.S. dollars, or 1.4 percent, to close at 2,049.3 dollars per ounce.

Investors are digesting the likelihood of several central banks keeping their interest rates below zero for a time in reaction to the COVID-19 pandemic. The move is likely to increase inflation and decrease the value of currency, driving investors to gold as a safe haven.

Gold also found support as a report released by Automatic Data Processing Inc. on Wednesday showed that only 167,000 jobs were added in July, slower than market expectations and far below the 3.8 million jobs added in June. Market analysts note that expectations for July were higher because COVID-19 lockdowns were seen lifted earlier in the month before the resurgence of cases later in the month.

A report released by the Institute for Supply Management on Wednesday showed the services index increased by 58.1 percent in July, better than expected and up from a reading of 57.1 in June.

A weaker U.S. Dollar Index further supported gold.

Silver for September delivery rose 86.2 cents, or 3.31 percent, to close at 26.89 dollars per ounce. Platinum for October delivery rose 33.9 dollars, or 3.55 percent, to close at 989.1 dollars per ounce.
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