Gold prices rose 1% Thursday as investors sought safe-havens after dour US economic reports exacerbated fears of a global recession amid central banks’ efforts to stem the financial rout from the coronavirus outbreak.
Spot gold was up 0.9% at 1,730.49 oz by 1104 GMT, erasing losses driven by profit-taking and a stronger USD earlier in the session.
US gold futures rose 1.2% at 1,760 oz..
The main factor supporting gold at the moment is the extraordinary amount of stimulus from central banks. I do not think it has been fully priced in yet.
The record highs hit in the aftermath of the global financial crisis, and even higher, look perfectly reasonable, under the circumstances, the 1,800 mark does not look very far away.
Have a healthy day, Keep the Faith!