Gold Climbs To 7-Year High On Growth Fears, Central Bank Measures

Gold prices rose to their highest in more than seven years on Tuesday as concerns over global economic growth and a wave of fiscal and monetary measures from major central banks lifted bullion’s appeal. Spot gold was up 0.3% to $1,719.84 per ounce, having touched its highest since Nov. 2012. U.S. gold futures rose 0.2% to $1,764.20. Gold tends to benefit from widespread stimulus measures from central banks, as it is often seen as a hedge against inflation and currency debasement. Lower interest rates also cut the opportunity cost of holding non-yielding bullion. “The flood of new money digitally printed by the central banks and huge debt pile by the states to fight the negative impact of the coronavirus (are) helping gold,” said Commerzbank analyst Carsten Fritsch. Read more at CNBC.