Gold prices reached their highest level in more than seven years on Tuesday, in light of fears of an economic downturn.
According to Reuters, gold gained in immediate trading 0.6 percent to $ 1724.72 an ounce by 0804 GMT, after touching the highest level since November 2012 at $ 1726.85 earlier in the session. Gold futures in the United States rose 0.6 percent to $ 1772.20.
Concerns about the economic outlook in particular supported gold, said Michael McCarthy, chief market analyst at CMC Markets. And liquidity from the (Federal Reserve) along with a background of lower interest rates makes gold a much more attractive proposition.
But he cautioned that in the absence of new news, there might be an average decline as investors and traders regain their positions.
Many countries and central banks have taken financial and monetary measures to support their economies in light of the outbreak of the Corona virus.
The US central bank announced a stimulus package worth $ 2.3 trillion last week, while European Union finance ministers agreed to economic support worth half a trillion euros.
And for other precious metals, palladium rose 1.9 percent to $ 2231.61 an ounce. Silver gained 0.6 percent to $ 15.54 and platinum rose 2.5 percent to $ 766.70.
