BENGLURU, Aug 18 (Reuters): Gold rose 1.0 per cent on Tuesday, climbing back above the $2,000 level breached earlier this month, as the dollar touched a more than two-year low and investors awaited details of the US Federal Reserve's strategy to combat a pandemic-induced economic slump.
Spot gold climbed 1.1 per cent to $2,006.84 per ounce by 1010 GMT, having earlier hit a one-week high of $2,009.89. Gold first broke the record $2,000-level early in August.
US gold futures were up 0.8 per cent at $2,015.30.
"The dollar has lost its attraction when it comes to return," Michael Hewson, chief market analyst at CMC Markets UK, said.
Making gold cheaper for those holding other currencies, the dollar index hit it lowest since May 2018, pressured by low yields and bleak US economic data.
On Monday, gold jumped as much as 2.4 per cent, drawing impetus from Warren Buffett's Berkshire Hathaway's buying a stake in major gold miner Barrick Gold. Bullion had scaled an all-time peak of $2,072.50 on Aug. 7.
This reinforced gold's 32 per cent jump this year, helped by a rush to perceived safety in the metal considered a hedge against inflation and currency debasement.
Gold, with its reputation for relative safety, is also drawing investors as the United States ratchets up pressure on China's Huawei, CMC's Hewson said.
