The price of Gold and Silver has been facing a high loss but today it has hit a more than the one-month peak on Monday, on concerns about the global economic damage from the coronavirus outbreak and support measures from central banks worldwide.
Spot gold was up 0.3% at $1,694.50 per ounce by 10:47 am EDT (1447 GMT), having earlier hit its highest since March 9 at $1,697.75. U.S. gold futures fell 0.6% to $1,742.90.
“There was a bit of profit-taking early on, but prices should remain firm. Central banks are doing everything in their power to support the stock market and economy, which will eventually lead to inflation,” said Phil Streible, chief market strategist at Blue Line Futures in Chicago.
Inflation is regarded as gold-positive because bullion is seen as a safe store of value when price pressures are rising.
The U.S. Federal Reserve on Thursday announced a broad, $2.3 trillion stimulus package to help weather the outbreak. The crisis has forced 16.8 million Americans to file for unemployment benefits since the week ended March 21.
The pandemic has infected more than 1.8 million people worldwide and killed 113,849, forcing countries to extend lockdowns and central banks to announce support measures to mitigate the financial toll.
U.S. stock indexes fell at the open with investors bracing for an expected slide in quarterly earnings and signs of the long-term damage of the outbreak on Corporate America.