Gold Outlook: Gold price rises to new multi-year high on fresh risk aversion
Spot gold jumped to new over eight-year high on Monday, following break of psychological $1700 level and former high at $1703 (posted on 9 March).
The yellow metal was up 1.36% for the day so far, extending Friday’s 2.37% advance.
Fresh risk aversion in the market on strong fall of US stock indexes boosted demand for safe-havens and lifted gold price.
Gold Price Analysis: Gold breaks the previous wave high and looks to target USD 1795.25
There has been a shift in gold over the last few weeks which had led to the precious metal pushing higher. It seems ever since the weekly jobless claims data came, one of the main themes of the COVID-19 trade is that the safe haven reality kicked in. Putting this into context, stocks have still been on the rise but its the US dollar that has pulled back. Previously the USD became the safe-haven asset of choice as a scramble of cash ensued. Now that moment has passed the reality is settling in and gold is soaring.
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