Gold futures rose above $1 800/oz for the first time in eight years as low interest rates and a resurgence in coronavirus cases drive demand for the metal as a haven.
The metal is heading for its best quarter since early 2016, benefiting from economic stimulus from the Federal Reserve and other central banks, simmering US-China trade frictions and renewed concern over economic fallout from the coronavirus. Investors also continue to pile into gold-backed exchange-traded funds, with holdings at a record.
“The $1 800 level is a psychological hurdle,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. “Low interest rates, monetary policies and the coronavirus are all at play.”