The Price Of Gold Rose Above $2000 Per Ounce, Updating The Record
The market is supported by growing expectations that US lawmakers will soon agree on a new package of measures to support the economy in the crisis caused by the coronavirus pandemic. The pressure on lawmakers is growing-with the Senate going into recess on Friday, August 7.
The leader of the democratic majority in the Senate, Charles Schumer, said on Tuesday that the US Congress is moving in the right direction, and he hopes that lawmakers can reach an agreement.
"Schumer's words suggest that we will see a new package of incentives that will prevent additional payments to the unemployed from being stopped. This is positive for stock markets and gold, " said BMO Capital Markets analyst Tai Wong.
"This means that the US Treasury will continue to borrow trillions of dollars, and at some point, we will have to pay the debt," the expert was quoted as saying by Bloomberg.
October gold futures are trading at $2002 per ounce, which is 1.4% higher than the price at the end of the previous session. December gold futures added 1.4% to the price. Their price rose to $2013.5 per ounce.
Despite the rise in gold prices to a record level, experts do not rule out their further growth against the backdrop of the weakening of the US currency, as well as record-low interest rates in the US. So, according to the forecast of Goldman Sachs, gold may rise to $2,300 per ounce "in search of a new reserve currency."