Commerzbank: stimulus efforts mean 'robust demand for gold as a safe haven'
(Kitco News) - Investors are likely to keep adding gold as a “store of value” as central banks remain accommodative and governments keep running up debt in their fiscal-stimulus efforts to prop up the economy and markets during the COVID-19 pandemic, Commerzbank said. As of 7:32 a.m. EDT, spot gold was trading up 50 cents to $1,765.70 an ounce. The metal was on its way to its third straight weekly gain, the bank pointed out, drawing support this week from worries about increasing infections in the U.S., with a daily record of 37,000 new cases. Some of the more heavily populated states suspended efforts to ease lockdowns, while others are requiring people who travel to coronavirus hot spots to self isolate for two weeks. “It therefore remains to be seen whether the trend towards improved economic data continues,” said Commerzbank analyst Carsten Fritsch. He later added, “The U.S. economy will continue to rely on massive monetary and fiscal policy support. The expansion of central-bank liquidity and public debt resulting from this continues to argue for a robust demand for gold as a safe haven and store of value.”