Gold Inching Toward Record Levels
Gold prices fell on Monday when news of the Pfizer-BioNTech coronavirus vaccine broke and investors turned their attention — and dollars — to the stock market, but the precious metal hasn’t lost its shine. As of late day Wednesday, gold was valued at $1,866 an ounce, not too far below its all-time highs north of $2,000 earlier this year.
Gold reached a record-smashing high of $2,080 an ounce in early August, spurred by central banks’ monetary easing, which created negative real yields, Citi economists told CNBC. Gold has a tendency to rise when the stock market is volatile, which was the case over the summer when the price of gold surged. Even with an invigorated stock market, some analysts think that gold will remain a hot commodity. Under the imminent Joe Biden presidency, Americans might be able to expect another round of COVID-19 relief stimulus payments, but that’s at least a couple months away and until then, Congress is unlikely to sanction a second stimulus. The weaker the economy, the more attractive gold becomes and the higher its prices go.
“All of the reasons for gold strength over the past few months are still in place. The horse has left the barn,” Bryan Slusarchuk, CEO of the mining company Fosterville South Exploration, told CNN on Wednesday. “People are looking at gold as an alternative currency.”
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