Gold scores new record, eyes best monthly performance since 2011

Gold prices jumped to a new record on Friday, to resume gains after taking a breather yesterday, as the US dollar fell against a basket of currencies, while heading for the best monthly performance since 2011, on strong safe-haven demand.

Gold prices rose 1.4% to the all-time high of $1,982.83 an ounce, after opening at $1,955.77, with a session-low of $1,955.07.

Gold lost 0.8% yesterday, posting its first daily loss in 10 days, and ended the longest winning streak since December 2019 on profit-taking.

The dollar index fell 0.2% today, to extend its losses for the third day, and hit a 2-year low of 92.55 points, which comes in favor of gold and other dollar-denominated metals prices.

This drop in the US dollar came after US President Donald Trump raised the possibility of delaying general election from November.

Gold prices have gained 11% so far during July, to head for the fourth straight monthly gain, and the largest since March August 2011, thanks to strong safe haven demand.

This came due to high risks in most global markets, chief among those are the geopolitical tensions between the US and China, and gloomy inflation prospects due to the massive stimulus plans by most global central banks to address the coronavirus impact.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the highest level since May 2013 of 1,241.96 metric tonnes.