By Bryan Wong
Investing.com- Gold prices hit a record high on Tuesday morning in Asia, supported by a weakening dollar that is driving demand for the safe-haven yellow metal.
Gold futures climbed 0.37% to $1,938.10 by 11:44 PM ET (4:44 AM GMT), surpassing the record of $1,923.70 set in 2011.
Gold prices have been on a relentless climb over the past few months as the COVID-19 pandemic has continued to spread and Sino-U.S. relations have worsened.
On Monday, U.S. Senate Republicans put forward a proposal for a $1 trillion COVID-19 aid package. If passed, the bill will slash by two-thirds supplemental unemployment benefits of $600 a week that expire at the end of the month. The package would include payments of $1,200 as well as loan packages for businesses.
The prospect of a package helped drive stock prices in the U.S. and put pressure on the dollar. Expectations that the U.S. Federal Reserve will continue along with its current policy stance also helped drive the dollar down and gold up.
Meanwhile, U.S. and China political instability also continue to boost investor demand for gold. Aside from ongoing disputes such as cyber security and rights to the South China Sea, the U.S. was ordered to close its consulate in Chengdu, reducing its diplomatic ties with the world’s second-largest economy.
In the U.S., confirmed cases of COVID-19 hit near 4.3 million while deaths passed 148,000, according to Johns Hopkins University data, also helping gold prices up.