Strong Demand Push Gold Prices to a Record High
July 27, 2020
Gold has been surging in recent months as investors looking for a safe harbor have driven prices higher. Gold prices climbed to their highest closing record since 2011 last week, and some experts feel the rally is likely to push prices to an all-time high.
The coronavirus has kicked off a global gold rush, and even as the stock market has rallied since the pandemic, investors are still concerned about the impact of a second wave of the virus, growing geopolitical tension between the U.S. and China.
Investors are also looking for a hedge against possible inflation. Central banks around the world are flooding stimulus money into their economies to combat the impact of the virus. Some worry that this will spark inflation, reducing the purchasing power of currency and increasing the value of precious metals like gold and silver, which has also seen an impressive rally in recent months.