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Gold rose at the start of the American session and rose to new highs around the $ 2064-65 area in the last hour. The metal built on breach of a key psychological level of $ 2000 this week and gained some momentum to continue the third straight session on Thursday. The momentum was fueled by fears of an increase in the number of COVID 19 cases, which is undermining the economic recovery in the US.
The disappointing ADP report also raised market concerns which indicated the labor market faltered. Also, negotiations over the US recovery package reached a dead-end for the time being.
The rise could also be attributed to the decline in US Treasury yields, the yield on the benchmark 10-year US government bond dropped back closer to an all-time closing low level of 0.501%, all of which benefited the precious metal.
