Gold Rises to Highest In 7 Years As Markets, Dollar, Tumble COMMODITIES: Gold Rises to Highest In Seven Years As Markets, Dollar, Tumble
09:15 AM EST, 03/06/2020 (MT Newswires) -- Gold prices surged again early on Friday, rising to seven-year highs as stocks continue to tumble and the U.S. dollar fell to an eight-month low as the coronavirus continues to spread.
Gold for April delivery was last seen up US$19.10 to US$1,687.10, the highest since early 2013.
The rise comes as stock markets in Europe and Asia tumbled as the number of coronavirus cases worldwide climb to nearly 100,000 as the disease continues to spread outside of China. Futures are also pointing to a much lower open on North American markets and the yield on 10-year U.S. bonds has dropped to a record low of 0.8%.
"This creates more or less the perfect environment for a higher gold price," Commerzbank analyst Daniel Briesemann said in a report. Commerzbank raised its year-end 2020 price forecast for the metal to US$1,650 per ounce from its previous US$1,550.
The U.S. dollar also fell, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.9 points to 95.92, the lowest since late June.