Gold price exceeds $2,000 first time ever as US Dollar weakens

*Precious metal records new first-time price of $2,048 per ounce due to weakening Dollar, other Coronavirus-related factors

*Gold is the clear beneficiary of safe haven demand ─Analyst

Isola Moses | ConsumerConnect

The precious metal gold price attained a new record high of $2,048.00 per ounce Wednesday, August 5 as a result of a weakening United States (US) Dollar and other Coronavirus-related factors.

Wells Fargo analysts told the Financial Times that over the past few years, the price of gold has “tracked closely with falling global long-term interest rates.

Analysts stated that the 30 percent rise in the price of gold could be attributed to “Coronavirus fears and excessive global money printing.”

As the COVID-19 pandemic cases continue to increase in several economies across the world, some investors have bought gold for protection as a safe haven amid fears that stimulus from central banks could fuel inflation in the coming months.

According to analysts, “more recently, gold has hopped on the US Dollar train, rallying above $1,900 as the US Dollar has become one of the weakest currencies on the planet.”

Silver prices also soared to a seven-year high of $27.195 per ounce this week.

Recall that the price of gold hit a then-record high of $1,944 per ounce at the end to July 2020.

Economists said gold could very well go as high as $2,000 per ounce due to political uncertainty and the US Dollar losing value, and it did just that.

Stephen Innes, Chief Global Markets Strategist at AxiCorp, in a research note July said: “Gold is the clear beneficiary of safe haven demand.”

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