Gold extended its rally to a fresh seven-year high after the Federal Reserve warned of potential asset-price declines as an economic recovery could stretch through until the end of next year. Palladium jumped.

Haven demand for bullion is being supported by dismal economic data and fears over new infections, even as investors are encouraged by businesses reopening across major economies.

Gold’s recent breakout raised prospects that it could set an all-time high soon as massive stimulus measures push holdings in bullion-backed exchange-traded funds to a record. The market is also being driven by speculation that U.S. interest rates could go negative and increased tensions with China.

“The recovery is probably set to be more problematic than the optimists think, with gold set to benefit from the enormous boost to money supply that is going to ensue,” said Gavin Wendt, a senior resource analyst at MineLife Pty.

Spot gold rose for a fifth day, reaching the highest since October 2012. It was up 1% to $1,760.79 an ounce by 10:24 a.m. in London, expanding this year’s advance to 16%.

Commercial real estate could be among the hardest-hit industries should the health crisis deepen, the Fed said Friday. Separately, Chairman Jerome Powell, who is due to appear before the Senate Banking Committee on Tuesday, told CBS that a full recovery of the U.S. economy may stretch through until the end of next year and depends on the delivery of a vaccine.

“This will not be an easy path” for gold to reach a new record, Commerzbank AG analyst Carsten Fritsch said. Much depends on further ETF buying as gold demand in other sectors is rather lackluster, he said. Yet, concerns over growth should remain, as the Chinese economy can’t compensate for potential declines elsewhere.

Other precious metals more widely used in industrial applications also advanced on Monday. China’s house-price growth accelerated last month, adding to signs that the top metal-consuming economy is gradually building post-pandemic strength, and the nation announced guidelines to revive large infrastructure projects.

Spot palladium jumped as much as 8.3%, the most since late March, and was last up 3.8% at $1,954 an ounce. Worries over supplies from South Africa also added to support, with Impala Platinum Holdings Ltd. shutting a mine over the weekend after several members of staff were tested positive for Covid-19.

Platinum gained 3.2% and silver rose 4.1%.

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