- Spot gold briefly touched a record high of $2,000 an ounce on Tuesday amid a rally for the commodity.
- Traders piled into the so-called safe-haven asset on hopes that another US stimulus bill is in the works.
- A bill could put further liquidity into markets and weigh on rates, supporting the commodity.
- Watch gold trade live on Markets Insider.
- Read more on Business Insider.
Gold hit a record high on Tuesday as traders piled into the so-called safe-haven asset on hopes that another US coronavirus stimulus bill is coming soon.
Spot gold rose as much as 1.2%, to $2,000.58 an ounce, before paring some gains.
“Gold has cleared the $2000 level and it might not be done as Treasury yields continue to slide,” said Edward Moya, a senior market analyst at Oanda.
A stimulus bill could add liquidity to markets and weigh on rates, which would further support the precious metal. Investors are watching for signs of progress as Democrats and Republicans debate the details of the bill before the Senate goes on summer break on Friday.
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While they have agreed on another round of stimulus checks, they remain divided on how to move forward with the $600 weekly unemployment benefit that expired last week. Democrats want to extend the benefit in full, while Republicans want to slash it by hundreds of dollars.
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Gold has rallied during the coronavirus pandemic, supported by a weak US dollar, low yields, and fiscal stimulus. On Monday, worldwide holdings in gold ETFs surged to 3,365 tons, second only to the US government’s reserves.
Gold has surged nearly 32% year-to-date.
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