Gold rose to a more than 7-year high on Tuesday on rising fears of a steeper economic downturn and amid massive liquidity measures by global central banks.
Spot gold gained 0.4% to $1,721 per ounce by 0243 GMT, having touched its highest since Nov. 2012 at $1,725.10 earlier in the session. U.S. gold futures rose 1.1% to $1,781.20 an ounce.
Many countries and central banks have taken fiscal and monetary measures to prop up their economies amid the coronavirus outbreak. The Fed last week announced a $2.3 trillion stimulus package, while European Union finance ministers agreed on half-a-trillion euros worth of economic support.
The Fed's stimulus measures aimed at injecting liquidity into the virus-hit U.S. economy tend to weigh on the dollar, which makes gold relatively cheaper to buy, while lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Reflecting appetite for bullion, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), rose 1.6% to 1,009.70 tons on Monday.
Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.
Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}