TAIPEI, Taiwan, Aug. 5, 2020 /PRNewswire/ -- According to financial analysts at MDK Global Advisors, gold soared to a new record on Friday, driven by a weak dollar and low interest rates. Silver steered towards its best month since 1979.
Spot gold is up 11% in July, headed for its strongest month in eight years, as the dollar sunk further, raising concerns that its global currency of choice status is at risk, and U.S. real yields plunged to a record low. While the intensity of rallies in both gold and silver eased mid-week, most market experts anticipate there are more gains to come.
Both metals are set for their most significant annual gain in a decade, with record inflows into exchange-traded gold and silver funds, as uncertainties about the coronavirus pandemic fallout fuel the appetite for havens. This week, the Federal Reserve reinforced its pledge to use all of its resources to support the U.S. economy, with governments and central banks around the globe continuing to unleash vast amounts of stimulus to boost economic growth.
Silver is also attracting increased support from investors gambling on a rebound in industrial demand, despite supply concerns.
"Spot gold hit a fresh record today, soaring as high as $1,983.36 an ounce and trading up 1% at $1,976.71 an ounce at 9:40 a.m. in London this morning. Comex gold futures reached $2,005.40. Spot silver has increased by 2.9% to $24.1679," said Su Tai, Research Director at MDK Global Advisors.
With more stimulus ahead, Goldman Sachs Group Inc. reported that gold is the last resort asset amid an inflation threat to the dollar. The bank is expecting a rally to $2,300. Bank of America Corp. said prices could climb as high as $3,000 an ounce, while JPMorgan Chase & Co. sees the rally losing momentum later this year.
"We believe there is lots of upside left in this rally, with the environment remaining highly conducive. The continued support from central banks will undoubtedly see stimulus policies remain in place for the foreseeable future, keeping bond yields low, raising inflation expectations and keeping the U.S. dollar weak," commented Mr. Dai Yang, an Executive Researcher at MDK Global Advisors.
Among other metals, Platinum eased 0.2 per cent to $900.82, and palladium dropped 0.5 per cent to $2,073.54.
About MDK Global Advisors
Established in 2011 and headquartered in Taipei, MDK Global Advisors is an independent wealth management and investment advisory company delivering top-tier financial services to both private and corporate clients across the globe.
Ms. Su Tai, Research Director
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SOURCE MDK Global Advisors