Gold price hits record $2,000 as investors seek safe-haven assets amid virus turmoil
GOLD hit $2,000 (£1,530) an ounce for the first time yesterday following a record-breaking rally driven by fears over the impact of the coronavirus pandemic on the global economy.
The yellow metal, seen as a safe-haven asset, has been on a steady upwards trajectory over recent months, climbing more than 30pc this year.
The reversal of a positive move in the dollar also assisted the metal, with silver prices buoyant too.
Gold has been one of the world’s best performing mainstream assets this year, thanks also to depressed bond yields and interest rates remaining around 0pc in many parts of the world.
Analysts at BofA Global Research forecast that bullion will surge by 50pc over the next 18 months to around $3,000 an ounce and see other precious metals benefiting in the Covid-19 pandemic environment.
Edward Moya of foreign exchange company OANDA said: “Gold is catching fire again on stimulus bets, some dollar weakness, and as risky assets get a boost on improving economic data and improving virus outlook.”
Investors remained concerned yesterday over whether the US would pass another spending measure to support the world’s largest economy.
A new stimulus bill could add extra liquidity to markets and weigh on rates, which would support the precious metal further.