* Silver peaks since October 2013 at $ 22.82 / oz
* Palladium glides more than 3%
* Tensions between the United States and China weigh on the stock markets
* GRAPHIC-2020 Asset Return: (recasts, comments, price updates) By Eileen Soreng July 22 (Reuters) – Gold rose to a nine-year high on Wednesday in bets that central banks would introduce more Stimulus measures to ease the economic impact of the coronavirus, while silver peaked at nearly seven years in the hope of a rebound in industrial activity.
Spot gold reached its highest level since September 2011 in early trade at $ 1,865.35, and by 1113 GMT it rose 0.9% to $ 1,858.39 per ounce. US gold futures were 0.9% higher at $ 1,859.60. “The fact that governments, central banks and almost everyone else is looking for more input on fiscal and monetary policy is helping to push the yellow metal forward,” said Michael Hewson, chief market analyst at CMC Markets UK.
With stocks struggling to climb, gold is likely to test $ 1,900 / oz in the coming days and weeks, Hewson said, adding that only an improvement in the pandemic situation and the economy could stop the gold run. In addition to a series of global measures, the leaders of the European Union sealed a recovery plan of 750 billion euros ($ 867.5 billion) on Tuesday, while White House officials and leading Democrats in Congress also discussed another round of aid measures. Non-productive gold has risen nearly 22% this year, driven by low interest rates and the wave of stimulus.
Coronavirus cases have crossed the 15 million threshold worldwide. Meanwhile, friction between the United States and China intensified after Washington told the Chinese consulate in Houston to close in three days, causing Europe’s shares to drop. Restricting the rise of bullion, the dollar rose 0.1% against its rivals. Elsewhere, silver rose 4% to $ 22.18 per ounce, having reached its highest level since October 2013 at $ 22.82.
The performance of silver, which also has industrial uses, relative to gold this month, reflected market optimism for a revival of the global industry, said Cailin Birch, global economist at the EIU.
“Overall, we expect demand for safe assets like gold and silver to remain relatively strong for the rest of 2020.” Palladium fell 1.7% to $ 2,121.10 per ounce and platinum rose 0.8% to $ 889.13. ($ 1 = 0.8645 euros)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold prices in different currencies ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Report by Eileen Soreng and Brijesh Patel in Bangalore; Additional report by K. Sathya Narayanan in Bangalore; Edition by Elaine Hardcastle and Jan Harvey)
8780, outside the US +91 80 6749 6131; Reuters messages: [email protected]))
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a request to make any exchange in products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.
