Gold price hit record high since 2011

Daniel Fowler
July 26, 2020

-China quarrel added further safe-haven fuel to a rally to a nine-year peak driven by fears over the economic hit from the coronavirus pandemic.

Meanwhile, U.S. economy healing from COVID-19 stays sluggish and the unrelenting increase of global cases continues.

For the week, gold rose almost 5%, rallying for a seventh straight week and posting its biggest weekly advance since the start of April. On its part, silver is also poised for its biggest weekly advance in nearly 40 years.

Spot gold climbed 0.9% to $1,902.99 per ounce by 10:47 a.m. ET (1447 GMT), having earlier hit its highest since September 2011 at $$1,905.99. The Group cited its qualities as a diversifier in a low-rate world.

It is natural that gold's safe haven and diversification properties attract investors and excess liquidity in the market while jewellery buyers confront unbelievably high prices amid fear of a shrinking wallet, he said.

"I would be buying now and continue to buy", said Mobius, who is the founder of Mobius Capital Partners.

Whether South Africa would benefit from the higher gold prices coupled with a weaker rand, Major said the problem is that the country was no longer a major player in the world's gold production.

Spot silver was steady at 22.60220z, The Devil's Metal poised for the biggest weekly advance since Y 1980.

Blake Shelton Opens Up About Helping Raise Gwen Stefani's Kids
It's amusing ". "I had a moment where Gwen told me, "You know, there's something about this song that just makes you smile".

Gold prices in India continued their record-breaking rally this week with rates piercing through the ₹51,000 barrier.

December, which overtook August as the contract with the highest open interest according to data released when Friday's Asian trading session was already underway, touched 1,927.10oz Thursday.

Although Italy's 10-year bond yield rose 4 basis points to 1.09%, it was still holding near Thursday's low around 1.04%.

US Secretary of State Michael Pompeo cast China's leaders as tyrants bent on global hegemony. Beijing has rejected the accusations and on Friday ordered the U.S.to close its consulate in the southern Chinese city of Chengdu.

Also appearing on the investors' radar is the probability of more fiscal and monetary policy measures; as the road to a full-blown economic recovery remains unclear.

In currency markets, the euro was up 0.2% to $1.1592 as it rode the European Union approval on Monday of a 750 billion euro recovery fund to revive the region's coronavirus-hit economies.

The popular safe-haven investment climbed at the start of the summer as a resurgence of USA coronavirus cases and fears of a prolonged recession drove investors to safe havens. Overall, this is a market that continues to find reasons to go higher, not the least of which of course is the Federal Reserve dumping dollars into the system.

"The closer gold gets to its record high the stronger the magnetic field will become and that could see it challenge that level before long", Ole Hansen, head of product method at Saxo Bank A/S, informed Bloomberg.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER