Yellow metal climbs back above $2,000 as dollar slides to 2-year low

Gold rose more than 1 per cent on Tuesday to climb back above the $2,000-level breached earlier this month, as the dollar hit a more than two-year low and investors awaited details of the US Federal Reserve's strategy to combat a pandemic-induced economic slump. In Mumbai, too, standard gold traded in the green and closed at Rs 53,600 per 10 gram.

Spot gold was up 1 per cent at $2,005.04 per ounce by 5.28 pm IST, having earlier hit a one-week peak of $2,009.89. Gold first broke the record $2,000-level early in August, reaching an all-time high of $2,072.50.

US gold futures were up 0.8 per cent at $2,014.40.

“It really is about the return or the perception of a return,” said Michael Hewson, chief market analyst at CMC Markets UK, adding, “The dollar has lost its attraction when it comes to return now relative to two years ago.”