Home » World » Gold jumps to record high on fresh economic concerns

Gold climbed to a record high in London and New York, stimulated by Japan’s decision to cut its key interest rate and escalate its asset purchase programme. Link to this video Gold, up 2pc this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. On Tuesday, bullion for immediate delivery added as much as $13, trading at $1,326.97 an ounce in early London trading. The metal has rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies. The Bank of Japan on Tuesday pledged to keep its benchmark interest rate at “virtually…

Gold, up 2pc this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. On Tuesday, bullion for immediate delivery added as much as $13, trading at $1,326.97 an ounce in early London trading.

The metal has rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies

The Bank of Japan on Tuesday pledged to keep its benchmark interest rate at “virtually zero”, after unexpectedly reducing borrowing costs for the first time since 2008.

This decision “confirms that there’s still concern about the economic recovery” Hwang Il Doo, senior trader at Korea Exchange Bank Futures, told PA. “Such concerns” he said “will continue propping up gold.”

The price of gold was further boosted by the weakening dollar, which slipped to 0.6pc against the euro on Monday, a six month low.

Amid fears of economic instability, investors’ appetite for gold as protection of wealth has surged. Gold, usually moving inversely to currency, has this year outperformed global equities, government bonds and most industrial metals.

Also on Tuesday, silver advanced to a 30-year high, increasing 1.3pc to $22.2319 an ounce – the highest level since September 1980

 

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