Gold may top $2,000 in safety flight
GOLD prices could surge above $2,000 (£1,587) per ounce this year for the first time amid a flight to safety as markets are battered by the fallout from Covid-19.
Wall Street analysts predict that it is only a matter of time before the metal reaches record prices, after a four-month surge to its highest value for nine years.
Edward Morse, global head of commodity research at Citi, said prices are likely to hit unprecedented levels in the next six to nine months. He put a 30pc chance on the $2,000 mark being crossed in as little as three months’ time.
Savers typically buy gold at times of crisis as it is seen as a safe store for value.
Its rally is likely to be helped if traders know they can make little money on other, more risky investments. Gold prices initially plunged in March as the full extent of the Covid-19 crisis dawned on markets and investors rushed for cash, selling even traditional safe havens.
But gold has jumped 23pc since March’s nadir, surging past $1,800 per ounce in the past few weeks to reach levels not hit since 2011. That built on a rally which began last year before the pandemic rocked markets.