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Gold reaches seven-year high amid growing economic concerns


Gold prices rose to a seven-year high during Tuesday's trading, with economic anxiety associated with the impact of Covid-19 on the global economy and amid the massive liquidity measures taken by global central banks.

As of 09:08 GMT, spot gold hovered around $1,719.26 an ounce, where the precious metal touched its highest level since November 2012 at $1,725.10 earlier in the session.

Gold has benefited from fears of a severe economic downturn on the back of anti-Covid-19 measures that have infected nearly 2 million people globally so far.

At the same time, the financial and monetary measures undertaken by many countries and central banks to support economies amid the corona outbreak contributed to the provision of liquidity, reducing the pressure to "sell everything" for cash.

Fed incentives to inject liquidity into the US economy affected by the coronavirus tend to put pressure on the dollar, making buying gold relatively cheaper.

Last week, the Fed announced a $2.3 trillion stimulus package, while EU finance ministers agreed to boost the economy by about half trillion euros.

The outbreak of Coivd-19 has claimed more than 119,700 lives and infected nearly two million people worldwide, according to calculations by Johns Hopkins University.

As for other precious metals, silver advanced by 2.12 percent to $15.87 an ounce, while the highest level recorded during the session was at $16.08.

Palladium descended by 0.15 percent to trade at $2,167 an ounce, while platinum went in the opposite direction by edging up by 5.28 percent at $789.80, recording the highest level since March 15 at $795.25.

Meanwhile, the dollar index, which trails the performance of the green currency against six major currencies, slumped 0.11 percent to trade at 99.23.

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