PRECIOUS-Gold accelerates higher on fragile economic recovery hopes

Reuters

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    * Gold up more than 35% so far this year
    * Silver hits more than seven-year peak at $28.42/oz
    * Interactive graphic tracking global spread of coronavirus:
 https://tmsnrt.rs/3aIRuz7
 

 (Updates prices)
    By Sumita Layek
    Aug 6 (Reuters) - Gold extended its record-breaking run on
Thursday, driven by expectations of more monetary response as
surging virus cases continue to pummel the U.S. economy.
    Spot gold  XAU=  hit an all-time high of $2,069.21 per ounce
and was up 0.8% at $2,055.87 at 2:10 p.m. EDT (1810 GMT). U.S.
gold futures  GCv1  settled 1% higher at $2,069.40.   
    "There are mixed signals that the economy is recovering and
some of the signs of recovery are relatively superficial as they
show aggregate figures and not how medium and small enterprises
continue to suffer," said Jeffrey Christian, managing partner of
CPM Group.
    "We have a very long way to go before we see a proper
economic recovery."
    Data showed U.S. jobless claims fell last week, but a
staggering 31.3 million people were receiving unemployment
checks in mid-July, as new infections battered the economy.
 urn:newsml:reuters.com:*:nL1N2F71R8
    Gold has rallied more than 35% this year as it is considered
an asset that should hold its value while the pandemic and money
printing by central banks erode the value of others.
 urn:newsml:reuters.com:*:nL8N2F75XK
    Markets awaited further policy response as U.S. Democratic
leaders and White House officials continued their talks to try
to hash out a next wave of relief to help the economy.
 urn:newsml:reuters.com:*:nL1N2F80Q6
    Silver  XAG=  prices jumped 4.6% to $28.26 per ounce, having
hit a more than seven-year peak of $28.42, helped by a
combination of investment and industrial demand.
    "While there are no early chart clues to suggest the gold
and silver markets are close to major tops, both are now getting
short-term overbought, technically, and are due for downside
corrections in the uptrends," Kitco Metals senior analyst Jim
Wyckoff said in a note.
    "And remember that with the higher volatility and bigger
daily price gains seen at present, there will also be bigger
downside corrections when they come."
    Platinum  XPT=  rose 1.5% to $981.53 per ounce and palladium
 XPD=  climbed 1.6% to $2,216.06. 

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Precious metals price performance    https://tmsnrt.rs/3fzIv4e
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 (Reporting by Sumita Layek in Bengaluru, additional reporting
by K. Sathya Narayanan; Editing by Dan Grebler and Jonathan
Oatis)
 ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780,
Outside U.S. +91 8061822693; Reuters Messaging:
Sumita.Layek.thomsonreuters.com@reuters.net))

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