Gold near 9-1/2 year peak on weaker dollar and stimulus hopes
Gold prices rallied to a near 9-year peak, boosted by a softer dollar, expectations of more stimulus measures to resuscitate pandemic-hit economies and increasing virus cases in the United States and globally.
Spot gold was trading 1.7 percent higher at $1,839.46 per ounce by 1224 GMT, having hit a high of $1,839.49 earlier, its highest since September 2011. U.S. gold futures were 1.3 percent up at $1,841.70.
The dollar fell to a more than 4-month low against a basket of currencies, weighed down by progress toward both a coronavirus vaccine and a fiscal rescue package in Europe.
Encouraging data from trials of three potential COVID-19 vaccines supported investor sentiment. Drugs developed by Britain's AstraZeneca with Oxford University and by CanSino Biologics with China's military research unit showed they were safe and produced an immune response in early trials.
European Union leaders agreed on a massive stimulus plan for their coronavirus-hit economies. EU Council President Charles Michel proposed that within the 750 billion euro recovery fund, 390 billion should be non-repayable grants, down from 500 billion as proposed earlier, and the rest in repayable loans.
After the EU summit outcome announcement, the investornow focus on the possible U.S. stimulus measures to help the economy after $3 trillion in stimulus earlier this year. Advisers to President Donald Trump and congressional Democrats were set to discuss the next steps in responding to the coronavirus crisis today.
The greenback against a basket of currencies traded 0.2 percent lower at 95.66, having touched a low of 95.62 earlier, its lowest since June 10. The U.S. Treasury yields edged higher, with the benchmark 10-year note yield trading at 0.618 percent.