Gold surges to nine-year high
By Abigail Townsend
Date: Wednesday 22 Jul 2020
(Sharecast News) - Gold rallied in morning trading on Wednesday to hit a nine-year high, as it moved within sight of breaching all-time records.
As at 0930 BST, gold was trading at $1,851 per ounce, spurred on by a weaker dollar as well as economic and geopolitical concerns. Earlier in the session, it breached $1,865, the highest since September 2011.
The all-time high for gold is $1,921, which spot prices achieved in 2011.
Naeem Aslam, chief market analyst at Avatrade, said: "Most of these gains are due to the loose monetary policy and escalating geopolitical tensions between the US and China."
Neil Wilson, chief market analyst at Markets.com, said: "Gold has broken out to notch fresh nine-year highs, bringing $1,900 firmly into view as well as the all-time high around $1,921 becoming a real target.
"The way interest rates are looking, combined with the macro backdrop and the threat of an inflation surge caused by the amount of aggressive monetary and fiscal stimulus, means gold may wend the year at $2,000."
On Tuesday, European Union leaders agreed a €750bn package to help the bloc recover from the Covid-19 pandemic, while in the US, a further round of relief measures continue to be discussed. So far, the number of coronavirus cases in the US has passed 3 million.
The dollar edged higher against the euro early on Wednesday, at $1.1535, but the greenback remains under pressure against the European currency and others.
Silver also hit record highs, up 5% at $22.34 per ounce.
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