Gold Prices Hit Highest in 7 Years... $1763 per Ounce

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] Gold prices, a safe-haven asset, hit a seven-year high following the negative economic outlook from the U.S. Federal Reserve (Fed).

According to Bloomberg News, on the 18th, gold spot prices in the international commodity market traded at $1,763.7 per ounce, up 1.2% intraday compared to the previous day. This is the highest level since October 2012.

The rise appears to be influenced by Fed Chair Jerome Powell's remarks on the 17th (local time) during an appearance on a CBS broadcast, where he pessimistically suggested that the U.S. economic recovery process "could continue until the end of next year."

Recently, the Fed has continued to deliver negative economic assessments. According to foreign media, the Fed announced in its semiannual Financial Stability Report on the 15th that asset prices such as stocks will experience shocks from the COVID-19 pandemic, and commercial real estate is one of the sectors expected to be hit the hardest.

Gold prices have soared this year, rising sharply by 16% since the beginning of the year. This is due to financial market instability caused by COVID-19 and economic stimulus measures by central banks worldwide.

This content was produced with the assistance of AI translation services.