Gold prices rose to their highest in more than seven years on Tuesday as concerns over global economic growth and a wave of fiscal and monetary measures from major central banks lifted bullion's appeal.
Spot gold was up 0.3% to $1,719.84 per ounce by 0953 GMT, having touched its highest since Nov. 2012. US gold futures rose 0.2% to $1,764.20.
Gold tends to benefit from widespread stimulus measures from central banks, as it is often seen as a hedge against inflation and currency debasement. Lower interest rates also cut the opportunity cost of holding non-yielding bullion.
"The flood of new money digitally printed by the central banks and huge debt pile by the states to fight the negative impact of the coronavirus (are) helping gold," said Commerzbank analyst Carsten Fritsch
"Uncertainty (due to the virus) continues and supports the safe-haven demand, along with the continued huge inflow into the gold-backed exchange traded funds."
Holdings in the SPDR Gold Trust, the world's largest gold-backed ETF, rose to 1,009.70 tonnes on Monday, the highest since June 2013.
"On the technical side, (gold) prices could jump higher towards $1,730 if a solid weekly close above $1,700 is achieved. Alternatively, sustained weakness below may... open the doors back towards $1,675," FXTM analysts said in a note.
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