By Gina Lee
- Gold prices continued to rise Wednesday morning in Asia, rising to the $1,700 mark.
Gold Futures rose 0.66% to $1,671.75 by 9:35 PM ET (1:35 GMT) after a 6% jump during the previous session. Contributing to the yellow metal’s best day in over a decade was a U.S. Senate announcement that a deal for a massive stimulus package to tackle the COVID-19 economic downturn was close.
However, those talks have been stretched into Wednesday.
A U.S. Federal Reserve announcement on Monday of unprecedented measures such as purchasing unlimited amounts of Treasury bonds and mortgage-backed securities also added wind to gold’s sails.
Mark Mobius, founder of Mobius Capital Partners, told Bloomberg that he viewed the recent sell-off in gold alongside risk assets such as stocks and oil as a sign of pure panic, with investors selling everything as COVID-19 spread.
“I think it’s a mistake. People should have gold and this may be a good time to increase holdings in gold - in fact I’m thinking that myself,” he added.
