Gold price hits record $2,000 as in­vestors seek safe-haven as­sets amid virus tur­moil

The Daily Telegraph - Business - - Front Page - By LaToya Hard­ing

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.

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