Gold Rises To Nine-year High On Stimulus Optimism

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Gold prices rose on Tuesday to hit a nine-year high on expectations of more stimulus amid surging coronavirus cases across the world. Coronavirus cases around the world surged to 14.6 million while deaths climbed to 609,198.

Spot gold edged up 0.4 percent to $1,824.30 per ounce, while U.S. gold futures were up half a percent at &1,825.65 per ounce.

Equities rallied and the euro hit its strongest level since early March after EU leaders agreed on a EUR 1.8 trillion package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.

After four days of marathon talks in Brussels, EU leaders conceded the package worth EUR 750 billion. Accordingly, the bloc will issue debt jointly which would be provided to member nations hit hardest by the Covid-19.

Out of the EUR 750 billion recovery plan, EUR 390 billion will be in the form of grants and EUR 360 billion of low interest rate loans. Now the deal needs to be approved by the parliament of 27 member states.

In the United States, congressional Republicans said they were working on a $1 trillion relief bill aimed at cushioning the heavy economic toll of the pandemic.

President Donald Trump said he is bringing back his controversial coronavirus briefings back, beginning today.


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