Gold Futures Extend Gains, Settle At Fresh 7-1/2-year High

Gold prices moved higher on Monday, extending gains from previous session, as riskier assets such as equities fell amid concerns over the spread of the coronavirus pandemic and its impact on the global economy.

The dollar’s weakness also supported the yellow metal’s recover. Despite staying above the unchanged line at times since morning, the dollar index lacked support and dropped to 99.36, losing about 0.16% from previous close.

Traders were also betting on hopes the governments and central banks will come out with more stimulus plans to revive sagging economies.

Gold prices were a bit weak earlier in the session, with traders largely staying cautious, as they looked ahead to quarterly earnings from top U.S. banks and financial firms for direction.

Gold futures for June ended up $8.60, or about 0.5%, at $1,761.40, a fresh high since October 2012.

On Friday, gold futures ended up more than 4%.

Silver futures for May settled down $0.516 at $15.537 an ounce, while Copper futures for May ended up $0.0430 at $2.3025 per pound.

On Thursday, European Union finance ministers agreed on a 0.5 trillion euros worth of relief for to support their battered economies. However, no decision was taken on how to finance recovery in the bloc, which is heading to a deep recession.

The Federal Reserve on Thursday announced additional actions to provide up to $2.3 trillion in loans to support the U.S. economy during the ongoing coronavirus pandemic.

The Fed said the funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

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