Gold Scores Large Gains as USD Declines

Gold prices surged on Thursday, scoring its biggest daily rise in about five months, as the U.S. Dollar (USD) plunged across the board after the Federal Reserve vowed to maintain its accommodative policies until the economy recovers from the coronavirus crisis with a recovery in the labor market.

The yellow metal front-month futures finished higher by $31.50, or 1.75%, at $1,831.20 per ounce.

This marked the biggest closing level for gold futures and its highest rise in a single session since March 9.

The precious metal was able to recover and restore the $1,800 key level, surging after recent movements within a relatively tight range.

A weaker than expected GDP growth rate in the U.S. during Q2 although provided a much needed support for the yellow metal, with the American economy growing by a huge 6.5% but less than a forecasted 8.5% forecasted growth rate.