Gold prices took back ground from Tuesday’s $1,500 drop on Wednesday morning as new U.S. stimulus package bounced stock markets sharply overnight.
Gold futures inched up by 0.55% to $1,534.20 by 10:20 PM ET (2:20 AM GMT).
The rise in gold prices has been widely attributed to recent efforts around the world to prevent a recession. Central banks as well as the U.S. Federal Reserve have cut interest rates and promised fiscal stimulus packages for the past two weeks.
However, Goldman Sachs warned about the gold price hike in a note. “[Gold] was also hurt by the fall in oil prices, as it brought Russia’s Central Bank purchases to a halt and could possibly trigger some selling… In the near term, the gold price is likely to remain volatile as it tries to find a new equilibrium.” he said.