//Gold hits eight-year high as markets fret about Covid-19 lockdowns – business live

Gold hits eight-year high as markets fret about Covid-19 lockdowns – business live

Rolling coverage of the latest economic and financial news

Latest: Gold hits $1,800 per ounce this morningInvestors predict more restrictions in the USAustralia’s markets dives 1.5% as hard border imposedUK chancellor Rishi Sunak’s summer statement – Politics Live

10.36am BST

Gold did get hammered during the market meltdown in March – as panicking investors were forced to liquidate some assets to cover losses.

But as calm returned, bullion prices started to shoot up – gaining over 20% since, as Bloomberg’s Lisa Abramowicz illustrates:

Gold is at a new post-2011 high, bumping up against the $1,800 level. It has gained more than 22% since this year’s low in March. pic.twitter.com/irGD83NWAD

10.11am BST

The steady surge in the gold price shows that investors are worried that more lockdown measures may be imposed, to combat spikes in Covid-19 infections.

As Paul R. La Monica of CNN Business explains here.

The CNN Business Fear & Greed Index, which measures seven indicators of investor sentiment, is edging back toward “fear” territory after hitting “greed” levels just a month ago.

Yet investors have continued to flock to gold — a sign of stress — despite a huge rally in big tech stocks and the broader market— a sign of confidence.

Gold passes $1,800 per troy ounce in early trading, at highest level since 2011, showing the haven asset increasingly prized by investors pic.twitter.com/9bqPSDMAtY

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Read more: theguardian.com