Gold Prices Rise On Fears For Economic Recovery
The price of gold is rising on Friday evening, supported by concerns about the recovery of the economy after the coronavirus, according to trading data.
The February gold futures price on the New York Comex exchange rose 0.75%, or $13.8, to $1,851. 15 per Troy ounce. March silver futures rose 0.51% to $24.218 an ounce.
The situation with coronavirus in the world is still difficult, which supports the value of bullion as a safe asset in times of economic uncertainty. According to Johns Hopkins University, almost 69 million people have become ill with COVID-19 worldwide, and more than 1.5 million infected people have died. The epidemiological situation remains particularly critical in the United States. According to the latest data, almost 15.6 million cases of coronavirus infection were registered there, and more than 292 thousand patients died.
The lack of certainty about the stimulus package for the US economy is also putting pressure on market sentiment. Negotiations in the country have been underway since August, but a decision has not yet been made. Earlier this week, Treasury Secretary Steven Mnuchin proposed $916 billion as a measure to boost the economy in the pandemic. The package proposed by the Minister was slightly larger than the amount previously discussed in Congress by the two parties.
"The key drivers (in the future) will be the size and scale of US stimulus, the trajectory of the dollar, and, of course, inflation," independent analyst Ross Norman told Reuters.