SINGAPORE: Gold rose on Thursday in Asia on a softer dollar, consolidating further above the key $1,900 level after a dramatic retreat earlier this week from an all-time high.
Spot gold was up 0.6% at $1,929.13 per ounce by 0708 GMT, a day after slipping below the $1,900 level in choppy trade. Prices hit a record high of $2,072.50 on Friday. US gold futures eased 0.5% to $1,938.90.
"The fall that took gold below $1,900 has flushed out a lot of weak longs and it looks like now we're going for a bit of consolidation and gold is preparing for another move higher," said Michael McCarthy, chief strategist at CMC Markets.
"The outlook remains positive in a lower interest rate environment, particularly with the weakening US dollar. The settings are unchanged, we're seeing record amount of stimulus and have real fears about the risks to growth."
Massive money-printing by global central banks and an ultra-low interest rate environment amid worries over the economic fallout from mounting COVID-19 cases have underpinned demand for bullion, helping it rise about 28% so far in 2020.
Gold is considered a hedge against inflation, and low interest rates reduce the opportunity cost of holding the metal.
Comments
Comments are closed for this article.