Gold rose to almost $2,000 after demand grew due to an interest rate decision by the US central bank, the FT has reported. Gold has risen by more than 30 percent year. This makes it one of the best-performing mainstream assets in 2020. The recent gains are due to the dollar suffering as investors predict the worsening Covid-19 situation in the US will lead to more economic stimulus measures.
Thomas Costerg, senior US economist at Pictet Wealth Management, said: “The Fed is likely to signal it continues to have its finger on the trigger — that it stands ready to ease policy more if necessary.”
Robert Rennie, global head of market strategy at Westpac added: “Anyone involved in the physical market would be aware of the fact that at the dealer level, access, particularly to gold and silver coins, has been curtailed as a result of the virus.”
Wall Street’s S&P 500 to rise 0.4 per cent when trading begins later in the global day, after rising by 0.7 per cent overnight.
London’s FTSE 100 was set to gain 0.2 per cent.
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6.17am update: China’s new green development fund raises $12 billion in phase 1
China’s first dedicated environmental fund, which will invest in green projects and firms, has already raised 88 billion yuan ($12.59 billion) in its first phase, an environment ministry official said at a briefing on Tuesday.
The National Green Development Fund will mainly be used to invest in national strategic programmes such as the green development of the Yangtze river region, said Zou Shoumin, a director responsible for finance at China’s Ministry of Ecology and Environment (MEE).
The fund was formally launched on July 15 by the MEE, the Ministry of Finance and the Shanghai city government.
It is designed to support the “green transformation” of the Chinese economy and strengthen the role of the market in fighting pollution, environment minister Huang Runqiu said at the fund’s launch ceremony.