Gold is heading for the biggest weekly gain since 2016, burnishing its credentials as an effective haven, as fearful investors struggle to assess the impact of the expanding global health crisis.
Bullion’s up 5.4% since Monday, near seven-year highs, amid a rush away from risk. An epic collapse in bond yields is spurring gains, with concerns rising over the scale of the coronavirus outbreak and effectiveness of policy.
The precious metal is one of the standout winners from the outbreak, with Goldman Sachs Group saying the commodity “has immunity to the virus.” Separately, money manager Jeffrey Gundlach told CNBC that gold is the best thing to own now and is headed to new highs. Bullion’s jump has come as equities sank and the Federal Reserve enacted an emergency rate cut.