Gold was up in Asia on Monday morning, boosted by continuous economic stimuli to combat the COVID-19 pandemics economic woes.
Gold futures were up by 0.23% at $1,739.60 as it reversed its earlier slip. The yellow metal’s previous session saw falls as investors cautiously cash out of their positions in the yellow metal as Asian stocks recorded gains.
“Gold is holding well near highs of the move as both retail and institutional investors have been consistently buying as global balance sheets have ballooned and the outlook for the global economy remains extremely uncertain,” Tai Wong, BMO head of base and precious metals derivatives trading, told the Sources.
Analysts expect that gold will continue to benefit from the continuous stimulus packages rolled out by central banks to cushion the COVID-19 pandemic’s economic impact.
As Johns Hopkins data said that there were almost 3 million COVID-19 cases globally as of April 27, they expect governments to announce more packages.
“Gold continues to benefit from this big mix of stimulus that was seen from all over the world. Also, the expectations are pretty high that we are not near the end of the stimulus (driven) trade and it is only going to intensify in the coming months,” Edward Moya, the source said.
“The one thing that could derail gold’s rally is going to be a vaccine breakthrough for COVID-19,” he added.