Gold and silver prices have jumped to their highest levels in over three months as the latest dip in US Treasury yields and concerns about growing Covid-19 cases in Asia continue boosting demand for the safe-haven assets.
Spot gold was trading at around $ 1,860 an ounce on Wednesday, after hitting $ 1,875 earlier in the week – the highest price seen since late January. Meanwhile, silver reached $ 28.75 an ounce – its highest level since February – before dropping to $ 27.82, according to Bloomberg Commodity Overview.
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“Treasury yields are falling and, on the other hand, there seem to be fears about virus resurgence in Singapore, Taiwan, and the broader Asian-Pacific markets … driving up demand for safety,” Margaret Yang, a strategist at DailyFX said, as cited by India’s NDTV.
On Monday, Federal Reserve Vice Chairman Richard Clarida said the US economy hadn’t hit the benchmark of “substantial further progress” needed for the regulator to start scaling back asset purchases. In an attempt to protect the national economy in the face of the coronavirus pandemic, the Fed has been buying $ 80 billion in treasuries and $ 40 billion of asset-backed mortgages a month, while keeping the interest rate close to zero.
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This post originally appeared on RT Business News