Investors send gold prices to a record high

The turmoil of the Covid-19 pandemic has seen investors push the price of gold to $2,000 (about £1,527) an ounce for the first time.

The price of gold, seen as a “safe haven” in economic crises, has increased by more than 30 per cent this year, while the price of silver has also risen sharply.

The price of gold reached $2,000 (about £1,527) an ounce for the first time yesterday as traders looked to safe haven investments amid turmoil caused by the Covid-19 pandemic.

Investors moved cash into the precious metal as coronavirus cases rise in the US and other major economies. The record high gold price has also been driven by concerns over tensions between Washington and Beijing.

Prices of other precious metals, including silver, have also risen sharply since the start of this year.

The price of gold has increased by more than 30 per cent this year as coronavirus cases continue to rise in the US, causing dozens of states to halt or reverse their plans to reopen.

The rapid rise in cases, which has dented hopes of a swift US economic recovery, has also helped to drive up the price of silver by around a third this year.

Some investors see the fallout from the Covid-19 crisis, along with ongoing tensions between the US and China, continuing to push up the price of gold.

Market strategist Margaret Yang said the price of bullion could continue rising in the coming weeks and months.

She said: “The mid- to long-term prospect of gold and other precious metals remains bullish against the backdrop of low interest rate environment and fiscal and monetary stimulus.”

Peter Mcguire from currency firm Xm.com said he sees gold reaching $2,200 by Christmas with silver, platinum and palladium also set to see strong gains.