Gold Rebounds Toward $2,000 After Dollar Drops to Two-Year Low (Bloomberg)

(Bloomberg) -- Gold is rebounding, with Comex futures climbing back to $2,000 an ounce, as the dollar extended its slump and investors bet U.S. interest rates would stay lower for longer.

The dollar dropped to the lowest in over two years, fueling a broad advance in commodities. Spot gold gained more than 3% over the past three sessions, following its first monthly loss since March, as the Federal Reserve’s new approach on inflation added support. That came after a slowdown in buying from bullion-backed exchange-traded funds raised concern that a key driver of the metal’s record rally may be losing momentum.

Bullion is benefiting from the dollar’s weakness coupled with continued risk hedging, and a breach of the $2,000 mark will “fan the flames of interest,” said Rhona O’Connell, head of market analysis for EMEA and Asia regions at StoneX Group Inc. “For the longer term, the persistent risks to the economic and financial environment, along with excess liquidity...”

https://finance.yahoo.com/news/gold-rebounds-toward-2-000-085320673.html