GLOBAL MARKETS-Gold Soars Past $2,000, Gold up on Stimulus Hopes

Tuesday 1441/12/14 - 2020/08/04
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New York, Aug 4, 2020, SPA -- Gold surged past the $2,000 mark on Tuesday after Democrats and the White House appeared closer to agreement on new stimulus to help the coronavirus-hit economy while stocks on Wall Street traded mixed as investors awaited more aid from Washington, Reuters reported.
Oil prices also rose on the prospect of more stimulus but Treasury yields fell to their lowest since March on safe-haven demand and concerns about the ultimate cost of aid.
Gold prices breached the psychological $2,000 level for the first time, propelled by hopes Washington will approve more stimulus to combat the economic toll of the still spreading pandemic.
The U.S. Senate's top Democrat said a new round of coronavirus relief was moving in the right direction, though the two sides remain far apart.
Spot gold prices rose 1.42% to $2,004.81 an ounce, after bids earlier hit highs of $2,009.134 an ounce.
Bullion has soared more than 30% so far this year, supported by lower interest rates and safe-haven buying on concerns Fed policy and government stimulus are debasing the dollar.
The bond market, which is at loggerheads with equity markets over stimulus and its role in the economy, is skeptical about the prospects of a rebound in economic growth in the third quarter.
The 10-year U.S. Treasury notes slid 4.8 basis points to yield 0.5151% after earlier trading as low as 0.51%.
22:22 LOCAL TIME 19:22 GMT