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Gold jumps to 7-year high
Why is it in the news?
- Gold rose 1% to its highest in seven years as the spread of the coronavirus intensified concerns about its impact on economic activity and global growth.
More in the news
- Data:
(1) Spot gold rose 1.1% to $1,636.60 per ounce as of 18:26 IST, after hitting its highest since February 14, 2013 at $1,636.66 earlier this session.
(2) S. gold futures jumped 1.2% to $1,639.60.
(3) Bullion has risen 3.3% so far this week, on track for its best week since early August
- Cause:
(1) There is a rise in risk aversion again due to fears that the COVID-19 disease will spread further.
(2) The virus poses a major risk for the global economy.
(3) The increase in number of new cases hit stock markets around the world, putting them on course for their worst week in four.
Source
The Hindu.