Gold’s record bullish streak was paused today as the dollar got some respite by investors seeking hedging from the US-China clash, though fear of the Covid-19 pandemic had the bullion on its way to its biggest. series of weekly earnings in about a decade.
Earlier, spot gold was down 0.31% to $ 2,056.72 an ounce, after climbing to a record $ 2,072.50 earlier in the day. Overall, the metal is up 4% so far this week, which will be the ninth in a row of gains.
“We are going to see some pullback in gold from its highs because the dollar’s decline is bottoming out, and we may have some recovery in the currency in the short term, which will reverse bullion gains, although not entirely.” said Spencer Campbell, director of SE Asia Consulting Pte Ltd.
The dollar was rebounding from two-year lows after US President Donald Trump’s decision to ban transactions in the country with two popular apps owned by Chinese firms, in a move that impaired risk appetite.
In many cases, the US currency has been the preferred hedge asset for investors when tensions between Washington and Beijing intensify, a factor that makes gold more expensive for buyers who handle other currencies.
Among other precious metals, silver was down 2.2% at $ 28.30 an ounce, after hitting its highest level since February 2013. It has gained about 16% so far this week.
Likewise, platinum was down 2.8% to US $ 970.31 an ounce, and palladium was down 1.7% to US $ 2,183.70.
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