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Gold Hovers Near Eight-year High

Gold climbed to its highest level in nearly eight years on Wednesday, as worries over a surge in coronavirus infections and hopes of more stimulus measures boosted safe-haven demand for the precious metal.

Spot gold rose 0.6 percent to $1,778.20 per ounce, its highest level since October 2012. U.S. gold futures were up 0.7 percent at $1,794.30.

Tokyo reported a jump in infections to mark its highest daily tally since May 5 while Germany reported 712 new cases, fueling concerns about a second wave of coronavirus infections.

New cases of Covid-19 rose 25 percent in the United States in the week ended June 21 and the death toll in Latin America passed 100,000 on Tuesday, according to a Reuters analysis and tally.

Dr. Anthony Fauci, the top virus expert in the U.S.told Congress on Tuesday that the next two weeks would be critical in trying to keep the virus under control.

Meanwhile, there are reports that the European Union is mulling a ban on American travelers when it reopens its borders on July 1.

Hopes of more monetary stimulus by central banks also helped support gold's safe-haven appeal.

U.S. Treasury Secretary Steven Mnuchin said the next stimulus bill will focus on getting people back to work quickly and he would consider a further delay of the deadline to file tax return.

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