Gold Soars as Fed Sounds Warnings on Asset Prices, US Recovery

Gold last traded at $1,744 an ounce. Silver at $17.87 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on safe-haven buying and a weaker dollar. U.S. stocks fell ahead of testimony by Treasury Secretary Mnuchin and Fed Chairman Powell to Congress on the economic response to the coronavirus pandemic.

FX EMPIRE/YAHOO---Bullion has now gained about 11.7 percent since March 31 and is set to post a 7th straight quarterly gain, which is the longest such streak since 2011. From a fundamental perspective, the gold surge appears to have been triggered by warnings out of the Federal Reserve about potential asset price declines if the coronavirus 'pandemic takes an unexpected course, the economic fallout prove adverse, or financial system strains reemerge'. Fed chair Jerome Powell also mentioned in a recent interview that the US economy's recovery might last through the end of 2021, provided a reliable Covid-19 vaccine can be rolled out by then. Such comments out of the world's most influential central bank adds to the risk aversion among global investors who are clearly flocking to the safety that Bullion offers....Bullion bulls are relishing any opportunity to push gold prices higher, with $1800 appearing to be just around the corner."