* Gold hits one week high at $ 2,009.89 / oz
* Silver jumps to 3.5%
* Interactive graphical tracking worldwide spread of coronavirus: open in an external browser
(Prices updated) By Eileen Soreng Aug 18 (Reuters) – Gold rose more than 1% on Tuesday to climb back above the $ 2,000 level broken earlier this month as the dollar hit a two-year low and investors awaiting details of the US Federal Reserve’s strategy to combat an economic downturn caused by pandemics. Spot gold was up 1% at $ 2,005.04 per ounce at 1158 GMT, after previously hitting a one-week high of $ 2,009.89. Gold first broke the $ 2,000 level in August, reaching a high of $ 2,072.50.
US gold futures were up 0.8% at $ 2,014.40. “It’s really about returning as the perception of a return,” said Michael Hewson, chief market analyst at CMC Markets UK. “The dollar has lost its attraction as it now returns relative to two years ago.” By making gold cheaper for those holding other currencies, the dollar index hit its lowest level since May 2018, driven by low yields and pale US economic data. On Monday, gold jumped as much as 2.4%, drawing momentum from Warren Buffett’s Berkshire Hathaway and buying a stake in big gold miner Barrick Gold. This strengthening of 32% of gold this year, helped by an impetus to consider perceived security in the metal as a hedge against inflation and faluta-faluta. Gold, with its reputation for relative safety, also attracts investors as the United States increases pressure on China’s Huawei, Hewson of CMC said. For further direction, investors are waiting minutes from the last Fed meeting, which is due to be thanked on Wednesday. “Traders get the last step on the lookout ahead of the FOMC minutes, where it is up to the Fed to talk about YCC (yield of curve control) or inflation targeting, which is bad for the dollar and good for gold, ”said Stephen Innes, chief marketing strategist at financial services firm AxiCorp. Silver rose 2.4% to $ 28.05 per ounce. Platinum rose 1.1% to $ 960.06 per ounce, while palladium rose 0.2% to $ 2,195.18. (Report by Eileen Soreng and Harshith Aranya in Bengaluru; Edited by Barbara Lewis and Jan Harvey)
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