Gold prices recover spectacularly to seven-year high

Image: ABC Bullion.

Australian gold prices have continued their wild ride amid the coronavirus pandemic and crude oil price crash, shooting back up to a seven-year high of $2746.32 per ounce.

According to ABC Bullion data, gold prices tumbled to $2449.13 on March 17, before recovering two days later to $2631.21 per ounce.

On Monday, prices soared back to $2658.03 as investors scrambled to the “safe haven” asset and were then listed at $2746.32 at the time of writing on Wednesday.

Market Index had United States gold prices hitting highs of $US1671 ($2803.51), representing a movement of 10.6 per cent.

DailyFX strategist Michael Boutros said the price surge in the United States was a result of growing fears of a coronavirus-induced recession.

Fellow DailyFX analyst David Cottle said the metal’s pricing is behaving more like that of traditional metals.

“Gold prices have clearly powered away from the near-four-month lows hit in March,” Cottle said.

“Having fallen sharply this year as investors took advantage of price gains to cash out, despite the heightened uncertainty which usually supports gold, the metal now seems to be acting more in line with its traditional haven role.

“That could explain its slip back from session highs as stock markets held up.”

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