Gold’s powerful rally brings $1 800 into view as spreads yawn

Gold extended a rally to hit the highest level in more than seven years on concern that the coronavirus pandemic will have a devastating effect on the global economy, hammering corporate earnings while supercharging demand for havens.

Bullion has soared as the outbreak tipped economies into recession and spurred central banks to launch huge stimulus. Since getting caught up in a wave of forced selling last month as equities sank, gold has staged a powerful recovery. That means futures are now nearing $1 800 an ounce after trading in the $1 400s less than four weeks ago. Spreads over spot prices remain wide.