The price of gold exceeds $ 2,000 for the first time

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Reuters

Gold topped $ 2,000 (£ 1,527) an ounce for the first time as traders seek havens amid the pandemic.

Investors have moved money into the precious metal as cases of Covid-19 increase in the United States and more money is pumped into the global economy.

The record gold price was also motivated by concerns over tensions between Washington and Beijing.

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

The price of gold has risen more than 30% this year as coronavirus cases continue to rise in America, forcing dozens of states to halt or cancel plans to reopen.

The rapid rise in cases, which shattered hopes of a rapid economic recovery in the United States, has also helped push the price of silver up by about a third this year.

Among the reasons for the hikes, investors are bracing for a possible upturn in inflation due to the impact of billions of dollars in stimulus packages from governments and central banks around the world.

In Washington, Trump administration negotiators have said they will work “around the clock” with Democrats as they try to strike a deal on more economic relief measures by the end of the week.

According to Bank of America, governments around the world have already announced stimulus measures worth around $ 20 billion to combat the economic impact of the pandemic.


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Media captionBBC’s Frank Gardner gained access to the Bank of England’s gold vaults

Some investors are seeing the fallout from the Covid-19 crisis, as well as the lingering tensions between the United States and China, which continue to drive up the price of gold.

Market strategist Margaret Yang says she sees the potential for bullion to continue to rise in the weeks and months to come: “The medium to long term outlook for gold and other precious metals remains optimistic in the future. the context of a low interest rate and fiscal and monetary environment. stimulus. ”

Peter McGuire of XM.com said he sees gold hit “$ 2,200 by Christmas,” with silver, platinum and palladium also expected to experience strong gains.

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