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