Gold paused after rallying for nine days to a record on a slight up-tick in the dollar as investors weighed comments from the Federal Reserve on uncertainties over the economic recovery amid the coronavirus pandemic.
Bullion has been supported as the US central bank left interest rates near zero and vowed to use all its tools to drive the recovery from the downturn that chair Jerome Powell called the most severe “in our lifetime”.
He sounded a dour tone, noting that more fallout from the outbreak still lies ahead. US deaths surpassed 150 000, the highest official toll in the world.
Gold has soared almost 30percent to a record this year as the pandemic drove demand for havens amid a weaker dollar and low interest rates.
With more stimulus on the horizon, Goldman Sachs Group Inc. has said that bullion is the currency of last resort and forecasts a surge to $2 300 an ounce.
Real yields on 10-year US Treasuries are sinking toward -1percent. – Moneyweb.