Gold futures were extending their gains early Wednesday after their highest settlement in the previous session since September 2011, supported by the prospect of a lengthy period of government and central bank stimulus to support economies harmed by the COVID-19 pandemic.

On Tuesday, the Federal Reserve's No. 2, Richard Clarida, did little to disabuse investors of the view that the Fed would do whatever it takes to limit the damage from the viral outbreak.

Precious metals have benefited from loose monetary policy as billion is viewed as a hedge against uncertainty and a protection against a wave of money printing to help stimulate economic growth.

August gold was trading $4.90, or 0.3%, at $1,814.80 an ounce, following a 0.9% gain for the yellow metal to its loftiest finish since Sept. 16, 2011, according to FactSet data. Meanwhile, September silver traded 15 cents, or 0.8%, higher at $18.845 an ounce, driving gold’s sister metal near the psychologically important level at $19, after it gained 0.6% in the previous session.

Source : Marketwatch