Gold price closes the highest $2000 for first time in its history

Mohammed Abdelkhalik
August 4, 2020
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Gold Price Forecast

The gold price rose during trading on Tuesday, ending the transactions above the psychological barrier of two thousand dollars for the first time ever, in light of the negative stability of USD against most major currencies.

Markets are still closely following the Coronavirus crisis, with the number of Coronavirus infections worldwide increasing by 18 million, including about 4.8 million cases in the United States.

USD stabilized against most major currencies, negatively, during Tuesday’s trading, giving up gains it made earlier today.

Gold price - August 4 2020

Gold Price

The number of people infected with Coronavirus increased to about 18.3 million cases worldwide, while the number in the United States increased by 4.8 million cases, according to Johns Hopkins University data.

Next Friday, the US Department of Labor will announce the monthly jobs report in the United States to determine the state of the labor market, unemployment rate and average wages.

A number of members of Federal Reserve expressed a pessimistic view of the US economy and its need for more support from Congress and from monetary policy as well.

The US central bank decided last week to keep the interest rate close to zero unchanged and the bank stressed to take all necessary decisions to support the American economy.

Coronavirus relief package in the USA

This has announced that White House Speaker Nancy Pelosi will meet with USA Treasury Secretary Stephen Manuchin on Tuesday to continue the discussion about the virus relief package, and this came after the end of yesterday’s round of talks, and in another context, the US President has just expressed The fact that the policy of “permanent closure” is not a “vital path forward” to combat the Corona pandemic.

The markets are looking for US Congress to reach two parts of the House of Representatives, the majority of which is occupied by Democratic Party and Senate, the majority of which is affiliated with ruling Republican Party, to approve virus relief package, especially with the continued spread of Coronavirus and the lack of a vaccine yet, and according to the latest figures issued by World Health Organization, number infected people has more than 17.66 million cases, and 680,894 people have died in 216 countries.

We would like to point out since Trump announced Friday that he would act soon to ban the application of Chinese-owned video “Tik Tok” from America, and it is reported that Beijing asked Washington last month to close its consulate in Chengdu, in response to recent US decision to close Chinese consulate in Hyosin recently, and the Chinese Foreign Ministry noted Back then, because ” current situation between Washington and Beijing is not something that China wants to see, and the United States is entirely responsible for it,” Beijing and Washington again urged that the wrong decision be created and create conditions for the return of bilateral ties to normalcy.

It is noteworthy that Fitch Ratings downgraded this week its evaluation of United States (AAA) to negative from stable, due to the erosion of credit power and inflation deficit, adding that the future direction of US financial policy depends in part on the November elections and the resulting congressional formation American, and warning that the stalemate in risk policy may continue.

Gold price increases due to high demand

On the other hand, World Gold Council revealed its half-yearly periodic report, which stated that funds traded in gold recorded during seventh June the seventh monthly increase in cash flows, respectively, to add 104 cubic tons of gold, or the equivalent of $5.6 billion or 2.7% of Asset Management and that global net flows during the first half of 2020 amounted to $39.5 billion, outperforming the record increase in 2016.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.