Gold Rises As Economic Uncertainty Prevails, Dollar Softens

“The path into the post-pandemic era still poses downside risks for the global economy, and if crystallized, could help bullion realize more of its upside,” FXTM market analyst Han Tan said.

Low interest rates globally and widespread stimulus measures have helped gold gain over 28% so far this year, as they lower the opportunity cost of holding non-yielding bullion and bolster its appeal as a hedge against inflation risk.

Continuing the trend, the U.S. Federal Reserve on Wednesday vowed to keep interest rates near zero for a long time.

On Thursday, the Bank of England said it was considering negative interest rates, while the Bank of Japan signalled readiness to ramp up stimulus.