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Gold prices rise towards nine-year peak as virus cases spike
Gold smooth above the key $1,800 level on Thursday only shy of a near nine-year peak on growing concerns that surging coronavirus cases will put the brakes on the global economic recovery, having focus shifting to Circumstance.S. jobs data later on in the day.
Spot yellow metal was up 0.2% at $1,814.53 per ounce by 0921 GMT. It climbed to their highest since September 2011 at $1,817.71 on Wednesday. U.S i9000. gold futures were zero.2% higher at $1,823.60.
“The mix of global central bank reducing, geopolitical risks, the persisting pandemic impact and worldwide recession could continue to press gold prices higher inside the medium term,” mentioned Bank of China Intercontinental analyst Xiao Fu.
But the analyst also mentioned: “There’s volatility ahead … There may be some better economic files or (signs economies are) returning to normal, it could slow up the rally to certain magnitude.”
Global coronavirus cases exceeded 12 million in Wednesday, with more than half a million deceased. In the United States alone, cases have already been on the rise in 42 of the 50 states within the last few two weeks, according to a Reuters news agency analysis.
Keeping alive doubts over the economic fallout, Circumstance.S. Federal Reserve administrators on Wednesday suggested this recovery in the world’s greatest economy may be stalling.
Meanwhile, Britain’s finance minister offers an additional $38 billion to move off an unemployment emergency.
Stimulus tends to boost yellow metal, which is considered a off-set against inflation and currency debasement.
Providing further help to gold, the $ traded near multi-week low-end. Gold gained ground although European stocks rose following software group SAP signalled a rebound in its organization.
“For as long as COVID-19 stimulates concerns all-around another round of lockdowns and slowing global advancement, gold may remain in vogue despite rising stock areas,” said FXTM expert Lukman Otunuga.
Among some other metals, palladium climbed 1.4% to $1,943.57 per ounce, plus silver gained 1.2% to $18.99, although platinum was 0.9% higher at $851.31.