Gold Edges Up, Briefly Rises Above US$1,700 Gold Edges Up, Briefly Rises Above US$1,700 As Stock Markets, Dollar, Plunge
COMMODITIES: Gold Edges Up, Briefly Rises Above US$1,700 As Stock Markets, Dollar, Plunge
02:05 PM EDT, 03/09/2020 (MT Newswires) -- Gold ended higher Monday as stock markets plunged, with some investors seeking a safe haven while others look for liquidity to cope with falling equities.
Gold for April delivery closed up US$3.30 to US$1,675.70 after earlier touching US$1,704.30, the highest since early 2013.
Stock markets opened Monday in near freefall, with European markets down more than 7% and the Dow Jones Industrial Average last seen,down 1,949.96 points, or 7.5%. But gold prices were volatile as investors balanced off the need for liquidity and with the need for a safe haven from plunging markets
"The panic on the markets is reflected in higher gold prices, though the upswing is not excessive as yet. Admittedly, gold did exceed the psychologically important $1,700 per troy ounce mark this morning for the first time since the end of 2012, but did so only briefly," Commerzbank analyst Daniel Briesemann said in a report.
The U.S. dollar also fell sharply, making gold more affordable for international buyers. The ICE dollar index, which measures the greenback against a six-currency basket, was last seen down 1.66 points to 94.79, the lowest since September, 2018.