Gold surges 2.5% on Monday and marks best daily gain in four months, narrowly missing a retake of $2,000

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Gold prices rallied Monday, with the gain helping the precious commodity put in the best one-day gain in about four months on the back of a slide in government bond yields and the U.S. dollar, which were raising the appeal of the precious commodity. The yellow metal also may have drawn additional interest after a public filing that offered a peek of holdings of Warren Buffett’s Berkshire Hathaway Inc. revealed that the conglomerate had taken a new stake last quarter in the world’s second-largest gold miner, Barrick Gold Corp. . December gold rose $48.90, or 2.5%, to settle at $1.998.70 an ounce. On a dollar and percentage basis that marks the best day for gold since April 22, FactSet data show. Shares of Barrick Gold, meanwhile, were trading 11% higher. Last week, gold came under pressure as U.S. Treasurys climbed to an eight-week high, detracting from the appeal of bullion. However, gold enthusiasts insists that uncertainty about the economic landscape fostered by the COVID-19 pandemic make bullion a solid long-term bet, particularly as countries spend trillions to support their economies. On Monday, the 10-year Treasury note yield was at 0.674%, compared with 0.708% Friday afternoon. Meanwhile, a gauge of the dollar, the ICE U.S. Dollar Index , was down 0.3%, at 92.83. Gold benefits from lower yields because it doesn’t offer a coupon and a weaker dollar can make bullion more attractive to users of other currencies.
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