By Gina Lee
Investing.com – Gold prices continued to rise Wednesday morning in Asia, rising to the $1,700 mark.
Gold Futures rose 0.66% to $1,671.75 by 9:35 PM ET (1:35 GMT) after a 6% jump during the previous session. Contributing to the yellow metal’s best day in over a decade was a U.S. Senate announcement that a deal for a massive stimulus package to tackle the COVID-19 economic downturn was close.
However, those talks have been stretched into Wednesday.
A U.S. Federal Reserve announcement on Monday of unprecedented measures such as purchasing unlimited amounts of Treasury bonds and mortgage-backed securities also added wind to gold’s sails.
Mark Mobius, founder of Mobius Capital Partners, told Bloomberg that he viewed the recent sell-off in gold alongside risk assets such as stocks and oil as a sign of pure panic, with investors selling everything as COVID-19 spread.
“I think it’s a mistake. People should have gold and this may be a good time to increase holdings in gold – in fact I’m thinking that myself,” he added.
Gold Prices Rise as U.S. Stimulus Nears
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.