Gold jumps above $1,800 barrier for first time since 2011

Gold prices rose in European trade Wednesday, to extend gains for the fifth straight day, to jump above the $1,800 barrier for the first time since 2011, on strong safe-haven demand, amid the growing risks in global markets.

Gold prices rose 0.5% to the highest since September 2011 at $1,804.12, an ounce, after opening at $1,794.80, with a session-low of $1,791.45.

Gold gained 0.6% yesterday, posting its fourth straight daily gain, as investors rushed to safe havens.

Gold prices jumped above the $1,800 psychological threshold for the first time in 9 years, amid the growing risks in global markets.

Chief among these risks are the spike in coronavirus infections in the US, which is expected to delay the US economy's recovery from the coronavirus pandemic damages, in addition to the gloomy outlook for most major economies, especially in the euro area.

The EU yesterday slashed its growth forecast for 2020 to a contraction rate of 8.3% from 7.5% in the previous estimates, followed by a recovery in 2021 by 5.8% from 6.0%.

Several US Federal Reserve officials have warned from the coronavirus impact on the US economy, which weighs down on consumer spending and the labor market, and will require the Fed to inject more stimulus.

Gold stocks at the SPDR ETF rose by  7.89 metric tonnes yesterday, with the total at the highest level since May 2013 of 1,199.36 metric tonnes.