GOLD futures rose above $1,800 an ounce for the first time in eight years as low interest rates and a resurgence in COVID-19 cases drive demand for the metal as a haven, said Bloomberg News.
“The $1,800 level is a psychological hurdle,” Howie Lee, an economist at Oversea-Chinese Banking Corporation in Singapore told the newswire. “Low interest rates, monetary policies and the coronavirus are all at play,” he said.
Bullion for August delivery reached $1,802.80 at 11:20 am on the Comex in New York, the highest for a most-active contract since November 2011. The move extends this year’s advance to 18% and marks a breakout from a months-long trading range. Gold touched all-time highs in September 2011, with futures rising to $1,923.70 and spot metal advancing to $1,921.17, said Bloomberg News.
“The Fed is being extremely accommodative and because these shutdowns are starting to reoccur globally, more central bank measures are probably going to be initiated,” Phil Streible, chief market strategist at Blue Line Futures in Chicago, told Bloomberg News.