News ID: 272092
Published: 0147 GMT July 27, 2020

Gold forges record high as investors seek safety

Gold forges record high as investors seek safety
SHUTTERSTOCK

Gold soared to a record high on Monday as investors rushed into the safe-haven commodity on concerns about heightened China-US tensions, a spike in virus infections and a lack of progress on a new stimulus bill in Washington.

With vast monetary easing measures put in place by the US Federal Reserve also pushing the dollar lower against most other currencies, gold is flying, with the spot price hitting an all-time high of $1,944.71 per ounce, well above its previous record of $1,921.18 seen in 2011. It later pulled back somewhat, AFP wrote.

“Always a sign of trouble, gold continued its red hot streak on Monday, the safe haven commodity looking mighty attractive after another troubling weekend of COVID-19 and US-China headlines,” said Spreadex analyst Connor Campbell.

At the same time, after months of healthy rallies across equity markets – fueled by trillions of dollars in government and central bank support – traders are beginning to step back as they weigh the long-term economic impact of the coronavirus.

Eyes are on the Fed’s policy meeting this week, with some predicting further measures to boost the economy – possibly negative interest rates – that could put more pressure on the dollar and send bullion to a new high.

The greenback was also down against most other currencies, with the euro at its highest since September 2018.

 

 

 

 

   
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