Gold heads for new record price
June 24, 2020 - Gold is on the brink of challenging the $1,800 an ounce mark -- a move toward a new record price -- as the coronavirus pandemic pushes demand for safe-haven assets.
Gold has jumped as threats to the global economy forced central banks to lower interest rates, and governments to mount comprehensive stimulus programmes to rescue economies suffering from the pandemic.
Propelled by the risk of high inflation and currency debasement, investors are turning to bullion as a store of wealth. Banks including Goldman Sachs Group now forecast gold hit a record $2,000 within a year, according to Bloomberg News.
Gold futures headed higher for a fourth straight day on Wednesday (June 24), opening at $1,784.40, and pushing the precious metal toward its highest level since September 2011, when it peaked at a record $1,923.70.
Bullion has been gaining momentum since 2018, driven by U.S. President Donald Trump’s ongoing trade war with China and turmoil surrounding the Trump administration’s threat of import tariffs on Europe and Canada.
Coronavirus cases in the U.S. surged 25% in the week ended June 21 compared from the week before.
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