Gold Zips Higher As Fed Moves Seen Weakening Dollar

(April 9, 2020 - Carl Surran - Seeking Alpha News Editor)

Gold futures rally (XAUUSD:CUR) to their highest levels since late 2012, helped by a declining U.S. dollar on the back of the Fed's aggressive new lending plans which aim to support the economy amid the coronavirus pandemic.

June Comex gold (NYSEARCA:GLD) +2.5% to $1,726.30/oz., the highest intraday level since November 2012; for the week, the yellow metal is on track to gain more than 5%.

Also, June silver +3.6% to $15.75/oz.

The "takeaway for gold is extreme bullish," Jeff Wright, executive VP of GoldMining Inc., tells MarketWatch. "This will lead over the long term to a much weaker U.S. dollar... which is good for gold."

"The virus has driven [central banks] to aggressive monetary policy stimulus and that's driving investors into gold," UBS analyst Giovanni Staunovo says. "Safe-haven demand has been increasing [and] we're seeing a lot of inflows into exchange traded funds."