Article Image
IPFS News Link • Gold and Silver

Gold Jumps to 7-Year High After Fed's Warning on Stocks, Growth

•, Ranjeetha Pakiam and Elena Mazneva

Haven demand for bullion is being supported by dismal economic data and fears over new infections, even as investors are encouraged by businesses reopening across major economies.

Gold's recent breakout raised prospects that it could set an all-time high soon as massive stimulus measures push holdings in bullion-backed exchange-traded funds to a record. The market is also being driven by speculation that U.S. interest rates could go negative and increased tensions with China.

"The recovery is probably set to be more problematic than the optimists think, with gold set to benefit from the enormous boost to money supply that is going to ensue," said Gavin Wendt, a senior resource analyst at MineLife Pty.