Gold prices pop higher than Buffett shares of the second largest miner in the world


Gold prices rose higher on Monday, partly supported by a slide in government bond yields and the US dollar, which were the attraction of the precious commodity.

But the yellow metal may also have attracted extra interest after a public submission that offered a glimpse of Warren Buffett’s Berkshire Hathaway Inc. BRK.A,
-0.91%
BRK.B,
-1.01%
revealed that the conglomerate took a new stake in its second-largest gold miner, Barrick Gold Corp., last quarter. BLK,
+ 0.68%

To read: Did Warren Buffett just bet against the US economy? His latest investment raises some questions

Last week, gold came under pressure when US Treasuries climbed to a height of eight weeks, deviating from the call of bullion. However, gold enthusiasts argue that uncertainty about the economic landscape fostered by the COVID-19 pandemic makes bullion a solid long-term bet, especially as countries spend trillions to support their economies.

On Monday, Treasury yields slipped, with the 10-year Treasury note rate TMUBMUSD10Y,
0.668%
at 0.69% and one meter of the US dollar against half a thousand currencies, the ICE US Dollar Index DXY,
-0.30%,
off 0.1%. Gold benefits from lower yields because it does not offer a coupon and a weaker dollar can make bullion more attractive to users of other currencies.

Some experts see the recent pullback of gold and silver from a recent strong uptrend as consolidation ahead of its next phase. Gold got a sharp pullback on Tuesday that helped snap a quarterback of the week.

“We will have a new Bullish signal with a clear oversupply of $ 1,965, in a scenario that remains dominated by coronavirus news and fears of further lockdowns,” Carlo Alberto De Casa, chief analyst at ActivTrades, wrote in a note. “Expectations for further actions by central banks remain constant and this is another supporting element for gold. A recent decline below the $ 1,920- $ 1,930 support zone would indicate weakness. ”

Indeed, the People’s Bank of China on Monday injected fresh liquidity into the financial system, while keeping the rate stable at 2.95% on a one-year medium-term loan facility of $ 100.74 billion, while addressing the effects of the viral outbreak, Reuters reported.

December gold GCZ20,
+ 1.92%
GC00,
+ 1.92%
rose $ 14.10, or 0.7%, to $ 1,963.90 an ounce after the metal took a weekly decline of about 3.9% on Friday, marked last Tuesday by the biggest daily dollar fall since April 15, 2013.

Meanwhile, silver prices are September SIU20,
+ 5.44%
rose 94 cents, or 3.6%, to $ 27,030 an ounce after a 5.3% weekly loss.

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