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Gold Surpasses $2,000 Threshold for First Time in History

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Gold surpasses $2,000 threshold for first time in history

Gold closed above the $2,000 threshold for the first time in history Tuesday and markets rose slightly amid low-interest rates and optimism surrounding additional federal stimulus.

Spot gold rose 1.4% to $2,004.35 an ounce while gold futures ended the day 1.7% higher at $2,021 as governments worldwide have pushed a surge of financial aid into their economies in response to the COVID-19 pandemic.

The rally in gold prices comes as the Federal Reserve left the benchmark lending rate unchanged at 0% to 0.25% last week, saying the economy is still “well below” pre-pandemic levels.

Congress is also continuing negotiations for another coronavirus stimulus bill that would provide an additional round of $1,200 payments and an extension to federal unemployment benefits although Democrats disagree with Republicans and the Trump administration on the amount that should be provided.

Markets also showed modest gains Tuesday as the Dow Jones Industrial Average ended the day up 164.07 points, or 0.62%, while the S&P 500 gained 0.36% and the Nasdaq Composite increased 0.35%.

Netflix stock helped to lead the way for tech stocks, rising 2.21%, while Apple stock rose 0.67%.

Disney stock also increased 0.81% before releasing its earnings report after markets closed on Tuesday.

The company announced it experienced a $3.5 billion hit to operating income after its parks were closed during the quarter as revenue for the Parks, Experience and Products segment, fell 85% to below $1 billion.

On the other hand, Disney reported strong streaming numbers announcing it now has 100 million paid subscribers across it streaming services, including Disney+, Hulu and ESPN+, with more than half coming from Disney+ which launched last year.

Additionally, the company said it would allow Disney+ subscribers to watch its live-action remake of Mulan on the service for $29.99 in the United States beginning Sept. 4.

Following the report, Disney stock rose 4.71% in after-hours trading.

Copyright 2020 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI’s prior written consent.

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