Gold continues to trade near record high on robust safe-haven demand, and persistent weakness in the US dollar Index that is now trading near 2-Year low. Safe haven support is coming from surging cases of COVID-19 in the US, Brazil, India, and other areas of the world.
The impact of safe-haven demand and dovish central bank expectations is clearly seen on the fund buying of gold and silver recently. The long position in Gold ETF hit another record high of 3355.22MT last week and also, a long position in Silver backed ETF hit a record high of 879.357 million Troy ounces.
US 10-Year bond yield remains in the bears’ grip and hovers around 0.52 mark, another factor that is supporting the rising trend of the gold.
The World Gold Council reported last week that India's gold consumption the first half of this year (Jan-Jun) plunged -56% y/y to 165.6 MT. India is the world's fourth-largest gold importer.
WTI and Brent Oil remain sideways as soaring stockpiles, weak demand hope and rising cases of Covid-19 have been putting pressure on the prices while, the OPEC+ production cut agreement of 7.7mbpd for August (although that is less than 9.6-9.7mbpd during May-July), the decline in the U.S. and global oil production, the slump in active global oil rigs to a 21-year low and the sharp decline in OPEC crude oil production were the amongst the key factors lending support to the prices.