Gold Rebounds Toward $2,000 After Dollar Drops to Two-Year Low

A worker plunges a gold ingot into a cooling bath at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979. , Bloomberg

(Bloomberg) — Gold is rebounding, with Comex futures climbing back to $2,000 an ounce as the dollar weakened and investors bet U.S. interest rates would stay lower for longer.

The dollar dropped to the lowest in over two years, fueling a broad advance in commodities. Spot gold gained more than 3% over the past three sessions, following its first monthly loss since March, as the Federal Reserve’s new approach on inflation added support. That came after a slowdown in buying from gold-backed exchange-traded funds raised concern that a key driver of the metal’s record rally may be losing momentum.

“Now that month end is out of the way, the underlying trends can resume, one of which is a lower U.S. dollar,” said Shyam Devani, chief strategist at SAV Markets in Singapore. “Broadly, the massive increase in global money supply keeps gold in an uptrend.”