Gold hovers near 8-year high as second coronavirus wave fears mount

Gold prices hit its highest level since October 2012 on Wednesday, as demand was boosted by worries over a jump in coronavirus infections and hopes of more stimulus measures to combat the economic blow.

Spot gold was up 0.2% at $1,769.76 per ounce as of 0234 GMT after touching $1,773, its highest level since October 2012 in early Asian trade.

U.S. gold futures rose 0.2% to $1,785.80.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

Also helping gold, the dollar index fell 0.1% and hovered near a more than one-week low hit in the previous session.

A spike in new coronavirus infections weighed on investor sentiment towards riskier assets.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.28% to 1,169.25 tonnes on Tuesday.

Elsewhere, palladium edged up 0.1% to $1,926.06 per ounce, platinum dropped 0.4% to $825.59 and silver fell 0.4% to $17.89.

Via Reuters