Gold prices hit an all-time high on Tuesday after a top U.S. Senate Democratic leader said that Democrats and the White House were closer to an agreement on the stimulus bill to help the virus-hit economy.
Spot gold rose 0.9% at $1,993.83 per ounce by 11:27 p.m. EDT (1527 GMT), after hitting a record $1,994.86. U.S. gold futures rose 1.4% to hit an all-time high of $2,014.20.
The confirmation that there has been development in negotiations with Republicans on new COVID-19 support has boosted gold back to recent highs, said Tai Wong, head of base and precious metals derivatives trading at BMO.
U.S. Senate Democratic leader Chuck Schumer said COVID-19 legislation talks with White House were finally moving in the “right direction.”
Bullion has surged about 31% so far this year, supported mainly by lower interest rates and widespread stimulus by global central banks to ease the economic blow from the pandemic.
“The market is being well supported by the likelihood of additional stimulus in the U.S; stimulus continues to pressure the U.S. currency, in addition to that U.S.-China tensions is adding a bit of safe haven demand,” said David Meger, director of metals trading at High Ridge Futures.
Beijing on Tuesday rebuked U.S. President Donald Trump’s moves to force China-owned TikTok into a sale of its U.S. operations.
Meanwhile, new orders for U.S.-made goods increased more than expected in June, suggesting the manufacturing sector was regaining its footing.
Among other metals, silver rose as much as 4.9% to $25.43 per ounce boosted by upbeat factory data.
Platinum rose 1.5% to $929.98 and palladium rose 1.5% to $2,115.35.
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