Gold prices have soared record high, according to a CNN report.

The report added, with investors rushing to find safe places to park their money.

This is due to the growing concerns about the resurgence of the coronavirus. 

Also, there are fears that this could impact the global economy. 

Health authorities warned that there is a strong possibility of a second wave of the coronavirus.

Moreover, they warned that as soon as flu season begins, it will be a confusing scenario as COVID-19 cases spikes.

The Cost Of Gold

Gold hit $1,944 per ounce earlier on Monday.

This broke its previous record of $1,921 set in 2011.

The report added, that gold gained about 27% so far this year.

Moreover, silver also got a boost.

It climbed more than 6%to reach $24.21 an ounce.

This new record eclipsed Thursday’s seven-year high for silver.

Gold Hitting $2,000 Per Ounce

Analysts at UBS said gold can reach $2,000 per ounce before the end of the year.

They attributed this to the low US interest rates and a weaker dollar and they also tossed the tension between the US and China in the mix.

Stephen Innes, a chief global markets strategist at AxiCorp, said in a research note that the record run may not be over yet.

“Gold is the clear beneficiary of safe-haven demand,” Innes added.

Main Driver

Further, the report noted that the main driver behind gold’s rally has been falling returns on US government bonds.

This is according to Hussein Sayed, a chief market strategist at FXTM.

He added, this reflects the likelihood that the Federal Reserve will have to keep interest rates lower.

And the Federal Reserve intended to do the same for a prolonged period of time to support economic recovery.

Moreover, the US dollar is currently weak.

The US dollar is trading at a 22-month low of 0.85 euros and a 4-month low against the Japanese yen.


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