Gold surpasses $2,000 threshold for first time in history

Aug. 4 (UPI) -- Gold closed above the $2,000 threshold for the first time in history Tuesday and markets rose slightly amid low-interest rates and optimism surrounding additional federal stimulus.

Spot gold rose 1.4% to $2,004.35 an ounce while gold futures ended the day 1.7% higher at $2,021 as governments worldwide have pushed a surge of financial aid into their economies in response to the COVID-19 pandemic.


The rally in gold prices comes as the Federal Reserve left the benchmark lending rate unchanged at 0% to 0.25% last week, saying the economy is still "well below" pre-pandemic levels.

Congress is also continuing negotiations for another coronavirus stimulus bill that would provide an additional round of $1,200 payments and an extension to federal unemployment benefits although Democrats disagree with Republicans and the Trump administration on the amount that should be provided.

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Markets also showed modest gains Tuesday as the Dow Jones Industrial Average ended the day up 164.07 points, or 0.62%, while the S&P 500 gained 0.36% and the Nasdaq Composite increased 0.35%.

Netflix stock helped to lead the way for tech stocks, rising 2.21%, while Apple stock rose 0.67%.

Disney stock also increased 0.81% before releasing its earnings report after markets closed on Tuesday.

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The company announced it experienced a $3.5 billion hit to operating income after its parks were closed during the quarter as revenue for the Parks, Experience and Products segment, fell 85% to below $1 billion.

On the other hand, Disney reported strong streaming numbers announcing it now has 100 million paid subscribers across it streaming services, including Disney+, Hulu and ESPN+, with more than half coming from Disney+ which launched last year.

Additionally, the company said it would allow Disney+ subscribers to watch its live-action remake of Mulan on the service for $29.99 in the United States beginning Sept. 4.

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Following the report, Disney stock rose 4.71% in after-hours trading.

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