Gold rises 1% as central bank stimulus fuels investor interest

NEWS SUMMARY: Precious metal prices rose again Thursday on safe-haven buying despite a firmer dollar. U.S. stocks traded mixed in volatile trading as Amazon and Netflix reached record levels, while investors digested data reflecting the economic devastation from the coronavirus pandemic.

CNBC--Gold prices rose more than 1% on Thursday as a raft of stimulus measures from central banks to counteract the coronavirus crisis drove investors into bullion as a safe store of value, while sombre U.S. economic reports stoked fears of a global recession....'The main factor supporting gold at the moment is the extraordinary amount of stimulus from central banks. I don't think it's been fully priced in yet,' OANDA analyst Craig Erlam said. 'The record highs hit in the aftermath of the global financial crisis, and even higher, look perfectly reasonable, under the circumstances. The $1,800 level does not seem very far away.'....Gold, which is often used as a safe store of value during times of political and financial uncertainty, is highly sensitive to interest rates, as lower rates reduce the opportunity cost of holding non-yielding bullion. Central banks have rolled out a wave of fiscal and monetary measures to ease the economic damage from the virus, which has infected more than 2 million people globally and killed 136,667....'While gold will continue to be in demand, sometimes investors need funds to cover their margin calls, so losses in other financial assets might lead to falls in the gold price,' said John Sharma, economist at National Australia Bank."