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Gold up around US$1,800/oz again, gold ETFs hit records

The gold price is glittering as investors eye continuing economic gloom, while the number of COVID-19 cases increase above 11.7 million and now include Brazil’s president Jair Bolsonaro.
Gold up around US$1,800/oz again, gold ETFs hit records Gold up around US$1,800/oz again, gold ETFs hit records Gold up around US$1,800/oz again, gold ETFs hit records Gold up around US$1,800/oz again, gold ETFs hit records Gold up around US$1,800/oz again, gold ETFs hit records

Gold ETFs added 104t in June to take global holding to all-time highs, according to the World Gold Council

Staff reporter

Comex gold futures are above US$1,800 an ounce for the second time in two weeks and flirted with a nine-year high. 

On the spot market, the precious metal was worth about $1,795/oz at the time of writing, a level last seen in 2012.

Meanwhile, gold-backed exchange traded funds recorded their seventh consecutive month of positive flows, the World Gold Council said yesterday, closing the first half of 2020 with a record US$40bn of net inflows.

Gold ETFs added 104 tonnes in June - equivalent to US$5.6 billion or 2.7% of assets under management - taking global holdings to all-time highs of 3,621t, the council said.

"To put this strength of demand into context, H1 inflows are also significantly higher than the multi-decade record level of central bank net purchases seen in 2018 and 2019, and could absorb a comparable amount of about 45% of global gold production in H1 2020," it said.

Gold producers performed strongly in Toronto yesterday, where Centerra Gold (TSX: CG), Endeavour Mining (TSX: EDV) and Iamgold (TSX: IMG) were among those reaching 52-week highs.

Gold major Newmont was up more than 2% in New York.

Key market indices were subdued yesterday, with the FTSE 100 down 1.5% and the S&P 500 closing more than 1% lower.

Market futures were mixed.