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Gold Edges Closer to $1,800/Oz as Virus Cases Surpass 10 Million

Published 06/28/2020, 07:03 PM
Updated 06/28/2020, 07:54 PM
© Reuters.  Gold Edges Closer to $1,800/Oz as Virus Cases Surpass 10 Million
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(Bloomberg) -- Gold futures edged closer toward $1,800 an ounce -- a level last seen at the end of 2011 -- as demand for haven assets surged amid concerns over rising coronavirus infections.

Bullion rose as deaths surpassed 500,000 worldwide and confirmed cases exceeded 10 million, according to Johns Hopkins University data. The increasing numbers are a chilling reminder that the deadliest pandemic of the modern era is stronger than ever.

The precious metal has rallied 17% this year as governments and central banks implemented stimulus measures to aid economies battered by the pandemic’s impact. Investors are increasingly turning to gold as a store of wealth, and banks including Goldman Sachs Group Inc (NYSE:GS). now forecast it’ll hit a record $2,000 an ounce in 12 months.

Gold futures on the Comex rose as much as 0.6% to $1,790.40 an ounce, near the highest level in more than seven years, and traded at $1,788.30 at 6:20 a.m. in Singapore. Investors are also piling into bullion-backed exchange-traded funds, with global holdings at an all-time high.

Among other main precious metals, spot silver climbed 0.5%, platinum gained 0.3% and palladium added 0.3%.

©2020 Bloomberg L.P.

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