Gold is falling due to corona virus
Gold is falling due to corona virus

Gold prices rose on Thursday, supported by grim economic outlook from the US Federal Reserve and a commitment from it to continue to pump support, while stock markets fell due to fears of a second wave of Corona virus infections.

By 14.24 GMT, the spot price of gold was up 0.3 percent to $ 1740.97 an ounce, after hitting its highest levels since June 2 h at $ 1742.71 earlier in the session. US gold futures increased 1.8 percent to $ 1751.20.

"Even if things start to improve, we do not expect the Fed to raise interest rates at all, so we will be in a very low interest rate environment for the foreseeable future, and this is positive for gold," said Bart Millik, commodities strategies manager at TD Securities.

The dollar rose against a basket of major currencies, with the Federal Reserve expecting the economy to contract 6.5 percent in 2020 and the unemployment rate to reach 9.3 percent at the end of the year.

The spot price of gold rose 1.3 percent yesterday, Wednesday, in its biggest daily gain in percentage terms in more than a month, with the Reserve Board saying that facing the recession from the corona virus is a "long way" and that it is necessary to keep the main interest rate close to zero until the end of 2022 at least.

In other precious metals, silver fell 1 percent in spot transactions to $ 18.06 an ounce, after rising by 3.8 percent on Wednesday.

Palladium fell 0.1 percent to $ 1945.30 an ounce, while platinum increased 0.1 percent to $ 833.22.