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Gold surged to a record high on Thursday as the COVID-19 pandemic clouded the economic outlook and bolstered bullion's safe-haven allure, though analysts said the rapid pace of gains could prompt some correction.
FILE PHOTO: Gold bars are displayed at South Africa's Rand Refinery in Germiston in May 30, 2006. REUTERS/Siphiwe Sibeko/File Photo
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REUTERS: Gold surged to a record high on Thursday as the COVID-19 pandemic clouded the economic outlook and bolstered bullion's safe-haven allure, though analysts said the rapid pace of gains could prompt some correction.
Spot gold hit an all-time high of US$2059.09 per ounce and was up 0.9per cent at US$2,057.00 at 1153 GMT. U.S. gold futures rose 1per cent to US$2,069.
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"It's the best of all worlds for gold at the moment; we still have the coronavirus crisis in full swing mainly in the U.S… We still have the question of whether the economy is going to recover or will slip back into recession," said Julius Baer analyst Carsten Menke.
Gold's gains came despite a slight uptick in the U.S. dollar, which also benefited from receding risk sentiment as investors awaited U.S. jobs data for confirmation on the state of the world's largest economy, even as Washington remained deadlocked over a large relief package.
The U.S. jobless claims are due at 1230 GMT, while payrolls figures will be released on Friday.
"In terms of economic numbers, they would really need to surprise to the upside to cool this market which is really overheating at the moment," Menke added.
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Gold has rallied more then 35per cent this year as it's considered an asset that should hold its value while the pandemic and money printing byRead More – Source
