Gold price topped $1,900 an ounce (approximately 28 grams) for the first time since 2011 and edged closer to an all-time high as geopolitical tensions and concern over global growth drive demand for the haven assets, Bloomberg reports.
The commodity, used by investors as a store of value in times of stress, has rallied strongly as other safe assets have become less attractive, strategists say. The US dollar has weakened in recent weeks as the America’s Covid-19 crisis deepens, while the inflation-adjusted yields available on benchmark government bonds have slumped well below zero.
According to the Financial Times, gold rose as much as $19 in afternoon trading on Friday to a high of nearly $1,906 an ounce, keeping it on course for a seventh straight weekly gain, as a deepening diplomatic row fed tensions between Washington and Beijing.
“The pace of this thing is unbelievable,” Bob Haberkorn, a senior market strategist at RJO told the Bloomberg agency. “People just want to buy, buy, buy, they just want to be in - they don’t want to miss it. People are preparing for more money printing, lower dollar in the future and hedging.”
The metal is now approaching its record intraday high of $1,921 set in September 2011, having risen about a quarter this year, making it one of the best-performing assets in 2020.