Gold Rose To The Highest Since The End Of 2012 Due To The FED Actions
Gold prices in the course of trading have reached the highest levels since the end of 2012 on the background of a decline in the U.S. dollar due to the actions of the U.S. Central Bank.
The U.S. Federal Reserve (FED) unveiled new lending programs on Thursday and expanded existing ones in an attempt to provide the economy with $2.3 trillion in financial support amid the coronavirus pandemic. In a statement, Federal Reserve Chairman Jerome Powell noted that the fed is trying to "provide as much support and stability as we can" during the current crisis.
"The market is awash with money from Central banks around the world, which is driving up the price of gold at this extremely uncertain time," said Oanda senior market analyst Craig Erlam, quoted by MarketWatch.
June gold contracts on Comex rose 3.6% to $1,744. 6 an ounce, the highest level since November 2012. Since the beginning of this week, the precious metal has added more than 5% in price.
Quotes for may silver contracts increased by 4.5% to 15.895 per ounce. This week, it has risen by 8.7%.
The price of platinum for July delivery rose 2.2% to $ 749.6 an ounce, while June palladium contracts rose 0.5% to $2105 an ounce.
Meantime, the ICE U.S. Dollar index, which shows the value of the U.S. dollar against six major world currencies, fell by 0.56%.