$1,931: Gold closes at record high

Chicago Sun-Times - - TOP NEWS - BY STAN CHOE AND ALEX VEIGA AP Busi­ness Writ­ers

Wall Street is in the throes of a gold rush, as in­vestors drive the price of the pre­cious metal to new heights.

Gold has been the best in­vest­ment of the year so far. The price of the pre­cious metal has climbed nearly 27% this year, tow­er­ing over the roughly 1% re­turn of big U.S. stocks.

Af­ter top­ping $1,800 per ounce in 2011, it’s taken nearly a decade for gold to sur­pass that level. Gold closed Mon­day at a record $1,931 an ounce af­ter briefly climb­ing to $1,941.90 an ounce. An­a­lysts at BofA Global Re­search say gold could reach $3,000 per ounce.

Sev­eral fac­tors are push­ing gold higher: Pan­demic con­cerns, wor­ries over ten­sions be­tween the U.S. and China, and fears of run­away in­fla­tion. Un­cer­tainty over the out­come of the elec­tions in Novem­ber may also be a fac­tor.

Mean­while, the stock mar­ket’s sharp re­bound since March is mak­ing stocks look ex­pen­sive rel­a­tive to earn­ings. That’s likely mak­ing an as­set like gold more at­trac­tive even as stocks con­tinue to rally, said Sam Sto­vall, chief in­vest­ment strate­gist at CFRA.

“There are many bricks in this wall of worry,” Sto­vall said.

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