Melted gold flows out of a melting machine in the form of a kilo bar at a goldfincher factory and bar producer Argor-Heraeus SA in the southern Swiss town of Mendrisio.
Arnd Wiegmann | Reuters
Gold prices rose for another consecutive day on Friday and touched levels not seen for nearly 6 years.
Pr. Gold at. 10:35 HK / SIN jumped 1.36% to $ 1,406.71 per. Ounce, soaring over the $ 1400 level for the first time since August 201
Gold prices rose a day earlier after the US Federal Reserve opened the door to a possible future lowering, the return on benchmark 10-year government bonds below 2% – a key psychological level – for the first time since November 2016.
US dollar The index, which tracks the dollar against a basket of currencies, also fell to 96,565 after touching levels above 97.6 earlier in the week.
"Gold prices have been restored from their recessions and we believe this increase could be sustainable," wrote strategists from Singapore's DBS Group Research in a note. "Rising political tensions, lower bond yields and (one dollar) on the verge of reversing should make the rest of 2019 very interesting for the metal."
Also on Thursday, the President of the European Central Bank, Mario Draghi, said "further stimulus will be required" if the economic situation worsens in the coming months. Bank of Japan Governor Haruhiko Kuroda also indicated on Thursday that the central bank would "consider expanding the stimulus without hesitation" – should the economy lose momentum in reaching the ever-scary 2% inflation target.
The tensions in the Middle East also continue to stay at Iran shooting down an American drone on Thursday.
With central banks loosening monetary policy and growth in the US, potentially springing up under elevated geopolitical risks, analysts at Citi said on a Thursday that they updated their long-term bullish gold targets.  "We released a 6-12m point price of $ 1,400 / oz in January and we are now rolling it to a $ 1,450 0-3m goal, depending on a deaf July FOMC (eg 50 bps and additional signaling) , "they said. 19659012]