Gold Price Rises to a Seven Year High

APMEX

4/16/2020 1:27:18 PM

Gold prices stabilized near a one-month high on Monday, supported by growing fears over the extent of the economic hit from the coronavirus pandemic. The yellow Precious Metal has fallen from a more-than-seven-year high. The coronavirus pandemic, which has hammered global economic growth, has forced nations to extend lockdowns to curtail its spread, and central banks have announced a wave of monetary support measures to mitigate the financial toll.

Gold prices rose to their highest in more than seven years on Tuesday as concerns over global economic growth and a wave of fiscal and monetary measures from major central banks lifted bullion's appeal. Further supporting bullion, the U.S. dollar slipped against other major currencies. Other precious metals also rose, with Palladium gaining 2.4% to $2,240.86 an ounce, Silver rising 0.8% to $15.57 an ounce, and Platinum climbing 1.5% to $759.6 an ounce.

Gold slipped 1% on Wednesday as the U.S. dollar strengthened. Mounting fears of a global recession kept the yellow Precious Metal firm above $1,700 per ounce mark. Lower interest rates also cut the opportunity cost of holding non-yielding bullion. Last week, the U.S. Federal Reserve announced a broad, $2.3 trillion effort to bolster local governments and small and mid-sized businesses hit by COVID-19. Gold prices have risen nearly 9%, or more than $130, so far this month after many countries have extended lockdowns and central banks around the world have rolled out a flood of fiscal and monetary measures to limit the financial toll.

Gold rose on Thursday as investors sought safe-havens after dull U.S. economic reports worsened fears of a global recession amid central banks’ efforts to stem the financial rout from the COVID-19 outbreak. Palladium climbed 1.5% to $2,212.61 an ounce, while Silver eased 0.2% to $15.45 an ounce and Platinum was steady at $779.69 an ounce.