Prices pick up for 3rd straight day, closing in on all-time high

Prices pick up for 3rd straight day, closing in on all-time high

A trader arranges gold chains at the Hua Seng Heng gold shop on Yaowarat Road. (Photo by Apichart Jinakul)
A trader arranges gold chains at the Hua Seng Heng gold shop on Yaowarat Road. (Photo by Apichart Jinakul)

Gold prices continued their rally for a third consecutive day, breaking the US$1,860-per-ounce threshold at one point, as hopes of further financial stimulus are high amid the persistent pandemic and flaring Sino-US tensions.

Silver climbed to the highest in almost seven years as the vast amounts of stimulus unleashed by governments and central banks have aided prices after the success of a European rescue package this week, Bloomberg reported.

The price of gold has climbed by more than 22% year-to-date from year-end 2019 as the precious metal is among safe-haven assets for investors to hedge against downside risks and geopolitical uncertainty.

"Momentum remains secure with gold, likely pent up after narrow range trading for much of July. Today's high at $1,866.0 an ounce is indicative of initial resistance," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA.

"The all-time high at $1,920.00 is within reach of being tested, assuming the global recovery remains uninterrupted across financial markets."

The US reported more than 1,000 deaths from the outbreak on Tuesday, the first time that grim daily milestone has been passed since June. President Donald Trump warned things would probably get worse before they got better.

The US ordered China's Houston consulate to quickly close, which the State Department later said was to protect intellectual property and "private information" of Americans, according to Bloomberg.

China's Foreign Ministry said it would "react with firm countermeasures".

"The US dollar's weakness has continued across both major and regional currencies in Asia. After a long-range trading slumber for the past month, currency markets have finally awoken, with some real momentum behind the rotation out of the US dollar and into recovery positioning," said Mr Halley.

Investors are also keeping a close watch on whether the US Congress will reach an agreement on the next stimulus bill before lawmakers start their summer break.

Domestically, the selling price of bullion with 96.5% purity was quoted at 27,700 baht per one baht weight gold.


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