Gold eases off after witnessing record high

WION Web Team New Delhi, Delhi, India Aug 07, 2020, 04.34 PM(IST)

Gold bars Photograph:( AFP )

Story highlights

Spot gold came down to 0.2 per cent to $2,058.55 per ounce by 0945 GMT after witnessing a record high of $2,072.50 earlier today

After registering a record peak in early trade on Friday, Gold's rally paused as the dollar found some relief from investors who are concerned over tensed ties between the United States and China.

Spot gold came down to 0.2 per cent to $2,058.55 per ounce by 0945 GMT after witnessing a record high of $2,072.50 earlier today. 

Also read | Chennai: Passengers smuggle gold via relief flights; 2.21Kg gold seized

It has gained 4 per cent so far this week, which is its ninth consecutive weekly gain.

Also read | NIA team to fly to UAE to investigate Kerala gold Smuggling case

US gold futures was trading at $2,070.20.

"We'll see some pullback (in gold) from these levels with USD bottoming for a while and maybe even see some strength in the USD in the near term, which will reverse these gains but not entirely," said Spencer Campbell, director at SE Asia Consulting Pte Ltd, reported news agency Reuters.

"People will be looking to re-enter the market on any pullbacks in precious metals as the medium to longer term views are significantly higher."

The dollar bounced back from a two-year low following US President Donald Trump's decision to ban US transactions with two Chinese apps. 

"The dollar's performance has a major say on how much runway gold bulls are accorded," said FXTM market analyst Han Tan.

Gold has jumped over 35 per cent this year amid surging COVID-19 cases that have adversely affected economies and led to unprecedented stimulus measures across the globe.