Gold briefly topped the $US2,000 level for the first time ever in trading on Comex on Monday in New York, but couldn’t hold that level and eased to end the session at a more modest record close.
At the same time, iron ore prices hit 2020 highs off the back of news that China’s economy is doing better than expected with gains of 5% on Monday.
Nasdaq hit new records and closed at an all-time high as investors ignored the impasse over a new federal unemployment support package and raid on TikTok to force it to sell its US operations.
That helped the ASX futures market higher overnight and the local market looks like starting the session with a bang and up nearly 90 points.
The Nasdaq climbed 1.47% to 10,902.80, beating its previous record high close on July 20.
The Dow rose 0.89% to end at 26,664.4 points, while the S&P 500 was up 0.72% to end Monday’s session at 3,294.61.
December gold rose 40 cents from Friday’s record end, or less than 0.1%, to settle at $US1,986.30 an ounce, after touching a fresh intraday peak at $US2,009.50.
Gold traded higher in after-hours dealings to be around $US1,993 an ounce at 7 am Sydney time.
The modest rise came after gold posted a weekly gain of 4.7% and 10.3% gain in July which was the best monthly rise since February of 2016.
Clipping gold was a small rise in bond yields and the value of the US dollar against its major rivals.
Gold wasn’t the only record seeker. The Nasdaq Composite Index reached an intraday record high above 10,900 earlier Monday.
Comex September silver added 20.1 cents, or 1%, to end at $US24.417 an ounce, after falling 1.2% last week to end July’s near 30% gain.
The solid rise in Chinese manufacturing in July saw Comex, September copper jump 4.4 cents, or 1.5%, on Monday to settle at $US2.912 a pound, after losing 1% last week but gaining 5.1% for the month.
That in turn saw iron ore prices hit 2020 highs in trading on Monday.
The price of 62% Fe fines delivered to northern china jumped 5% on the day to end at $US116.03, up $US5.45 off the back of the two good readings (see separate story) showing China’s manufacturing sector was improving at a faster rate than previously thought.
That’s the highest since July 2019.
The price of 65% fines from Brazil also hit a new high of $US126.30, up more than 3%.
Driving Wall Street and especially the Nasdaq was Microsoft’s pursuit of TikTok’s US (and Australian) operations which lifted sentiment
Microsoft shares jumped 5.6% after it said it would push ahead with talks to buy the US operations of Chinese-owned TikTok. President Donald Trump reversed course earlier on a planned ban of the short-video app.
Apple shares climbed 2.5%, expanding its rally following stunning quarterly results and announcing a four-for-one stock split. The tech giant is about $US140 billion short of hitting $US2 trillion in market value. Warren Buffett is still smiling.
And oil rose with West Texas Intermediate crude for September delivery added 74 cents, or 1.8%, to settle at $US41.01 in New York, while October Brent crude rose 63 cents, or 1.5%, to finish at $US44.15 a barrel in Europe.