On Wednesday, the precious safe-haven gold futures’ prices had been pushed further above the $2,000 an ounce level after setting a record closing high on Tuesday, as a sharply weakening American Dollar alongside optimisms over another series of monstrous stimulus packages for the recessed global economy amid a pandemic-induced downturn seemed to have played a pivotal part in gold’s strides further above $2,000 an ounce.
As beforementioned, the gold futures’ prices had set a new record after surging past the $2,000 level for the first time on Tuesday as investors remained fretted that a cascade of pandemic stimulus package all over the globe would trigger inflation and devalue other assets including the American Dollar.
Gold strives as Dollar drawdown nears under the weight of monstrous stimulus packages
On top of that, US Dollar’s dominance became subject to an open question over the recent months due to a persistence influx of money supply from the US Fed, which in effect had every possibility to stoke inflation and devalue the asset, analysts suggested, while fanning the flames of a US Dollar-selling spree further, a director of research at alternative ETF provider GraniteShares, Ryan Giannotto said, “The dollar is collapsing under the weight of $3 trillion in printed dollars, this all comes out in the wash with higher gold prices.
” Citing statistics, on Wednesday’s market closure, spot gold prices gained 1.53 per cent to wind down the day at $2,049.00 an ounce after hitting an intra-session high of $2,055.10, while the US gold futures’ prices closed the day 0.97 per cent higher to $2038.03 an ounce, remarking its third straight session of gains.
Nonetheless, the US Dollar Index (DXY) measured against a basket of six major currencies on an average had faltered 0.34 per cent to close the day at 92.81, while the bloc’s common currency euro added 0.58 per cent to wrap up the day at $1.1865 against its American peer.
The safe-haven Japanese Yen bolstered further 0.21 per cent against the greenback to round off the day at 105.49 yen per Dollar. Gold gains more than 35 per cent this year thus far and appears to have emerged as the year’s one of the most valuable investments.