Gold hits 8-year high, surge closer to $1,800 barrier

Gold prices rose Wednesday, to extend gains for the second straight day, hitting an 8-year high near surpassing the $1,800 psychological threshold, as the US dollar fell against a basket of currencies.

Gold prices rose 0.5% to the highest since October 2012 at $1,789.15 an ounce, after opening at $1,780.79, and hit an intraday low of $1,779.94.

The yellow metal gained 0.5% yesterday, to post its third daily gain in four days, as the US dollar fell.

Gold has gained around 13% during the second quarter, the seventh straight quarterly gain, and the largest since the first quarter of 2016.

This came thanks to strong safe-haven demand, due to high risks in most global markets, which are gloomy prospects for the global economy due to the coronavirus pandemic, the massive stimulus plans by most global central banks, the oil prices crash, the geopolitical tensions between the US and China and global trade war fears.

The dollar index fell more than 0.1%, to deepen its losses for the third straight day, which comes in favor of gold and other dollar-denominated metals.

The US dollar's drop comes as demand for the greenback as the best alternative investment slowed, after upbeat data in China and Europe that raised hopes for a quick global economic recovery from the coronavirus impact.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the highest level since May 2013 of 1,178.90 metric tonnes.

The Fund's holdings rose 210 metric tons during the second quarter, or around 22% of the total holdings in the first quarter.