Gold futures surpassed $1,600 an ounce on Tuesday and analysts believe the precious metal has the fuel it needs to climb to its highest level in more than seven years.

Gold’s big move on Tuesday “isn’t due to worries over a greater economic fallout from the coronavirus, but rather in anticipation of the flood of central bank stimulus that is all but guaranteed by the effects to date,” said Brien Lundin, editor of Gold Newsletter.

On Tuesday, the April gold futures contract GCJ20, +1.10%[1]  rallied by $17.20, or 1.1%, to settle at $1,603.60 an ounce after touching an intraday high of $1,608.20. The settlement was the highest for a most-active contract since late March 2013, according to FactSet data. Prices also posted for their biggest one-day dollar and percentage gain since Jan. 3 of this year.

Read: Gold tops $1,600 for first time since 2013 as coronavirus fears spur haven demand[2]

Also see: Why silver prices may climb to their highest yearly average since 2014[3]

The sharp rise for gold comes as the World Health Organization reported[4] on Tuesday 73,332 confirmed cases of COVID-19, the new coronavirus that was first identified late last year in Wuhan, China. There have been at least 1,873 deaths from the virus, WHO said.

China has taken steps to boost its economy, and the People's Bank of China reduced its one-year lending rate on Monday.

Read: China may postpone annual congress because of virus[5]

“The interest rate cut in China...

Read more from our friends at Gold & Silver