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The gold price has reached unprecedented heights
The gold price has reached unprecedented heights; The gold price has reached unprecedented heights and is approaching 2000 $ . It currently looks as if the
Yazar: Zack Smith
Yayınlanma: 27 Temmuz 2020 17:26
Güncellenme: 21 Eylül 2024 06:31
The gold price has reached unprecedented heights
The gold price has reached unprecedented heights and is approaching 2000 $ . It currently looks as if the Corona crisis continues to soar.
The gold price currently seems to know only one direction: upwards. The troy ounce hits a new all-time high of $ 1944 - the 2000 $ is within reach. The price has risen by 23.5 percent since the beginning of the year, and almost 32 percent since the Corona low in mid-March. What's going on
There are several reasons for the record price. One of them: gold is considered a safe haven in times of crisis and is valued as a stable investment in uncertain times. And as the corona pandemic appears to be picking up speed again; uncertainty is increasing again. There has recently been some evidence of a recovery in the global economy after the global corona crash. However; there is a growing fear that many countries in Europe and Asia are facing a second wave of infections - with unpleasant economic consequences. Added to this is the dispute between the United States and China, which reached a new high with the closing of two consulates.
The second important reason: In order to mitigate the economic consequences of the corona crisis, central banks pump liquidity into the markets, and governments follow up with economic programs worth billions. Given this flood of money, some investors expect current low inflation to pick up sharply in the foreseeable future - and gold has traditionally been seen as a means of storing a value in times of high inflation. This is also due to the fact that interest rates are low and so far everything indicates that nothing will change so quickly.
According to strategists; the soaring flight could continue. "It is the indirect effects of the virus on the economy and deep doubts as to whether we will experience a V-shaped recovery that will support the gold price;" said independent analyst Ross Norman. "If the economy shows no qualitative signs of improvement, one could see further inflows in the gold price and it would continue to rise towards $ 2000."
According to the Commonwealth Bank of Australia; the price of gold may break the mark in the near future. But for this jump; the support of the US Federal Reserve is necessary - for example; central bankers' games of thought regarding negative interest rates. That would drive current interest rates even lower; making gold more attractive.
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