Gold recaptures $2,000 mark as U.S. yields drops
Gold prices soared above 2% on Monday, briefly taking back its record $2,000 mark in almost a week as a renewed drop in the U.S. Treasury Yield had investors flocking to the safe-haven yellow metal.
December gold futures on Comex closed the day gaining a record 2.5% ($48.90) to $1,998.70 per ounce after it reached a high of $2,000.35 per ounce. The jump was its highest in a day since April 22.
However, spot price for gold capped gains for futures, which rose by 1.9% ($36.04) to $1,980.53 per ounce at 02:48 PM ET (18:48 GMT).
Many attributed the rally in gold to the drop in U.S. bond yields, which plunged 5% on Monday before recovering to show a deficit of 3.8% later in the day in New York.
Also affecting gold prices was the U.S. Dollar Index’s performance, which was down to 92.85 after it fell to a low of 92.75. The Dollar Index pits the Greenback against a basket of six currencies.