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Gold Sets Fresh Record Heading for Best Month in Eight Years | The Mesh Report

Gold Sets Fresh Record Heading for Best Month in Eight Years

The Gold Enthusiast July 31, 2020 Comments Off on Gold Sets Fresh Record Heading for Best Month in Eight Years

Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.

Spot bullion is up about 11% in July, heading for its best month in more than eight years, as a gauge of the dollar slumped, prompting concerns its status as the world’s reserve currency of choice is at risk, and U.S. real yields fell to a record low. While the ferocity of rallies in both gold and silver cooled in the middle of the week, most market watchers predict there may be more gains ahead.

Both metals have added about 30% this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the coronavirus pandemic fuels demand for havens. The Federal Reserve this week repeated a vow to use all its tools to support the U.S. economy, with governments and central banks worldwide already unleashing vast amounts of stimulus to shore up growth.

Spiraling deaths in several U.S. states and a partial lockdown in northern England show the pandemic is still wreaking havoc.

Adding to investors’ concerns, President Donald Trump floated the idea of postponing the November election, after dismal economic data Thursday. The European GDP numbers also show an unprecedented slump in the second quarter. Yet, Chinese manufacturing figures indicate continued upward momentum in the recovery, with silver getting added support from bets on stronger industrial demand amid concerns over supplies.

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