Categories
Gold

Gold jumps 2% as virus-led economic toll fuels stimulus measures

Click here to get this article in PDF

AFTERNOON UPDATE

Reuters/Sumita Layek/4-6-2020

photo of stacks of gold bars“Gold prices surged over 2% to a more than three-week high on Monday on expectations of global stimulus measures to counter the economic damage caused by the outbreak of the novel coronavirus. …… ‘Physical demand continues to dominate and support gold prices. Massive amounts of stimulus are effectively diluting currencies so gold demand is coming from all directions,’ said Phil Streible, chief market strategist at Blue Line Futures in Chicago.”

USAGOLD note:  Reuters echoes what we reported in this morning’s DMR.  We would add simply that the deflation scare is an additional factor pushing demand for physical metal as are the problems in the global oil patch.  Even we were surprised at gold’s strength as the trading day wore on.  Reuters provides a good overview at the link for those looking to catch up on what’s driving the gold price.