PRECIOUS METALS-Gold rises to a maximum of one week due to stimulus expectations from central banks


By Brijesh Patel Apr 23 (Reuters) – Gold prices hit a one-week high on Thursday, on expectations of further stimulus from central banks to limit the economic damage of the coronavirus, while most countries extend their containment measures to curb their spread. * At 1111 GMT, spot gold rose 1% to $ 1,730.32 an ounce, while US gold futures gained 0.5% to $ 1,747.50. * “Gold is rising because the opportunity cost of owning bullion is becoming attractive. You can print currency, but not gold, there are supply limitations,” said Xiao Fu, an analyst at Bank of China International. * “In the next week there are a couple of central bank meetings and they could release further money tree relief. In this situation, investors are looking for relatively safe assets,” he added. * Gold tends to benefit from extensive stimulus measures by central banks, as it is seen as a hedge against inflation and currency devaluation. * “Gold could be a safer bet in the face of weakening equity markets, coupled with negative real rates and continued fiscal and monetary stimulus that should provide another boost to the precious metal,” FXTM analysts said in a note. * “We expect gold to exceed the 2011 peak of $ 1,925 per ounce in the coming months,” they added. * In other precious metals, palladium gained 1%, at $ 1,957.30 an ounce; platinum rose 0.4% to $ 760.73; and silver improved 0.8% to $ 15.28. (Edited in Spanish by Carlos Serrano)


Please enter your comment!
Please enter your name here