2020.04.0918:52:00UTC+00Gold Settles At 7-1/2-year High, As Dollar Eases After Fed Stimulus

Gold prices climbed higher on Thursday, lifting the futures contract to a 7-1/2 year high, as the dollar weakened after the Federal Reserve announced a massive stimulus program to boost the economy.

The Fed announced the setting up of new loan plans and bolstered existing programs, aiming to provide a massive 2.3 trillion boost to the economy.

The dollar index dropped to 99.36, losing about 0.75% in the process. It was last seen hovering around 99.45, down 0.77% from previous close.

Gold futures for June ended up $68.50, or about 4.1%, at $1,752.80, the highest settlement since October 2012.

On Wednesday, gold futures settled with a small gain of $0.60 at $1,684.30 an ounce, despite rising to a high of $1,695.80 in mid-morning trades.

Gold futures gained about 7% in the four-day week.

Silver futures for May ended up $0.848 at $16.053 an ounce, while Copper futures for May settled slightly lower at $2.2595 per pound.

The U.S. Federal Reserve said today that it will provide up to $2.3 trillion in loans to assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

"Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," said Federal Reserve Chair Jerome Powell.

He added, "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."

First-time claims for U.S. unemployment benefits decreased in the week ended April 4th but still came in well above economist estimates, according to a report released by the Labor Department on Thursday.

The report said 6.606 million people filed for unemployment last week, a decrease of 261,000 from the previous week's upwardly revised level of 6.867 million.

Economists had expected jobless claims to drop to 5.250 million from the 6.648 million originally reported for the previous week.

Meanwhile, coronavirus worries persist despite a "flattening off" of cases in the past week. New York, the hardest-hit state in America, on Wednesday reported its highest number of coronavirus-related deaths ,779, in a single day for an overall death toll of almost 6,300.

The United States recorded nearly 2,000 fatalities for the second straight day, while in Britain the daily death toll hit a record 938 in one day.

Spain reported 683 daily coronavirus deaths in the past 24 hours, a lower number of fatalities compared to the previous two days.