Gold surged to a nine-year peak on Wednesday on bets that central banks would introduce more stimulus measures to ease the economic impact of coronavirus, while silver scaled a near seven-year high on hopes of a rebound in industrial activity.
Spot gold hit its highest since September 2011 in early trade at $1,865.35, and by 1113 GMT was up 0.9% at $1,858.39 per ounce. U.S. gold futures were 0.9% higher at $1,859.60.
“The fact that governments, central banks and pretty much everyone else are looking to more fiscal and monetary policy inputs is helping drive the yellow metal,” said Michael Hewson, chief market analyst at CMC Markets UK.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.