Gold price hits record high, explained!
Gold prices have soared to a record high, with investors rushing to find safe places to park their money as concerns grow about a resurgence in the coronavirus and the impact that could have on the global economy. Gold hit $1,944 per ounce earlier on Monday, beating its previous record of $1,921 set in 2011. It has now gained about 27% so far this year.
Buying gold is traditionally considered an investment that holds its value over time. Uncertainty is often seen as good for gold prices.
HOW LONG WILL THIS LAST?
“Gold is the clear beneficiary of safe haven demand,” Stephen Innes, chief global markets strategist at AxiCorp, said in a research note. And the record run may not be over yet. Analysts at UBS expect gold to reach $2,000 before the end of the year, driven higher by low US interest rates, a weaker dollar and tension between the United States and China.
Gold price hits record high explained