Make Kitco Your Homepage

Risk aversion is back and it is helping gold stay at its 9-year high - Commerzbank

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) Risk-off sentiment amid increased coronavirus cases in the U.S. is supporting gold above $1,810 an ounce on Wednesday morning, which marks a fresh 9-year high, according to Commerzbank. “Gold is being lent buoyancy by increased risk aversion in response to further rising corona infections. Cases in the U.S. reached the 3 million mark yesterday. However, it is not only in the U.S. that new cases are on the up. Australia’s second-largest city Melbourne is also back in lockdown as new infections surge. What is more, the head of state of a country badly affected by the pandemic has likewise contracted the virus, namely Brazil’s President Bolsonaro,” writes Commerzbank energy, agriculture and precious metals analyst Carsten Fritsch. The stock market rally is also on pause based on this risk aversion.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.