At 7-year high, gold eyes $1900 on stimulus-driven liquidity – ZAWYA

At 7-year high, gold eyes $1900 on stimulus-driven liquidity – ZAWYA

Gold futures rallied for the fifth consecutive day, surging above $1,700 an ounce to the highest since 2012, underpinned by ample liquidity in the wake of massive economic stimulus packages initiated worldwide to contain coronavirus epidemic as precious metals analysts forecast the yellow metal to hit $1900 an ounce in weeks.. Spot gold was 0.1 per cent lower at $1,659.53 an ounce, putting the spread between London and New York prices at more than $50.. On a technical basis gold has formed an inverse head and shoulders formation with Tuesday's move in gold futures breaking strongly above the shoulders indicating higher pricing ahead.. Angel Broking Deputy Vice President Anuj Gupta said that the high gold price was expected to continue on a high due to investors interest in precious metals in view of economic uncertainties.. Kedia Advisory Director Ajay Kedia said the high price was due to the fact that gold was seen as a safe investment.. The massive quantitative easing by global central banks and the unprecedented fiscal stimulus boost the incentive to hold gold, analysts said..