Gold prices have already far exceeded the historic highs of September 2011. In the last 24 hours, new numbers from the coronavirus outbreak showed more than 5,000 new deaths worldwide. On the other hand, the dispute between the United States and China intensified, and the dollar has weakened, which makes visions of a world economy rebound questionable. All these are the foundation for the gold rally.
This Tuesday will be reflected in the commercial calendars as the date on which gold reached its highest historical record since 2011. The price of the yellow metal has already exceeded $1,944 an ounce on the London Metal Exchange.
With the latest advances, gold is on the verge of a 25% appreciation so far this year amid the coronavirus pandemic. The strong demand for physical gold, which peaked during the first great extent of confinement measures, remains well above its historical average.
Political and economic turmoils keep supporting the precious metal’s prices
The closing of consulates between Beijing and Washington could be one of the great impulses for the golden event. On the other hand, the transition period of Brexit will end at the end of December. That is without any commercial agreement with the European Union. The transition period keeps the UK bound to the EU’s rules. As expected, the relationship between the two parties will be resentful from the next year.
The controversial agreement within the European Union and the distribution of billions of aids to cover the coronavirus hecatomb also have their specific weight.
After four days and four nights of difficult negotiations, the leaders of the 27 countries of the European Union managed to reach an agreement to close the bloc’s budget until 2027 for 1.8 billion euros. It includes the Recovery Fund of 750,000 million euros to help the countries most affected by the pandemic. €390,000 million will go to grants and €360,000 million in loans.
The stock falls in the United States have also been a benchmark that have pushed gold prices up. The S&P 500 Index lost 0.6% and faced its first weekly loss in a month. The pullback caused cautious investors to turn their purchases toward gold. The Dow Jones Industrial Average declined by a total of 182.44 units, or 0.7%. The Nasdaq Composite Index fell by a total of 98.24 points, or 0.9%. The same thing happened to the European and Asian stock markets, which includes IBEX.
Are new record highs for gold approaching?
On the other hand, the recovery of many mining companies, after the debacle of the closings in March and April due to the pandemic that affected thousands of workers, has been noticed.
The Mint specializes in the minting of bullion and have returned their investment coins to the market. The fact that bullion is within the reach of savers and consumers now, has been one more factor that pushed gold to record highs, since its demand has peaked.
Now everyone talks about the super record of gold. By when will it reach $2.000?