Global investors who previously ignored concerns about new cases of coronavirus in the US, Germany, China as well as the surge of the caseload in Latin America and the Caribbean, are now showing signs of discomfort.
Since Wednesday this week, the price of gold has climbed above $1,776 (134,315.33 INR) per ounce, marking its highest price level in nearly eight years.
The rise in the price of the essential safe-haven asset, gold, is a result of the falling stock market around the world.
In Germany, even as the closely-watched Ifo business survey was higher than expectations and indicated that the country’s recovery is underway, the DAX (German blue-chip stock market index) fell more than 2%.
In the US, stock futures are also lower as investors show signs of discomfort with the climbing coronavirus cases in states such as California, Florida, Arizona and Texas.
Senior market analyst at Oanda, Jeffrey Halley said, “The technical picture now suggests that gold can begin its long-awaited assault on $1,800 (136,130.40 INR) an ounce”