Gold Inching Toward Record Levels

gold bullion bar
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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.”  

If you’re interested, read more about investing in gold.

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About the Author

Nicole Spector is a writer, editor, and author based in Los Angeles by way of Brooklyn. Her work has appeared in Vogue, the Atlantic, Vice, and The New Yorker. She’s a frequent contributor to NBC News and Publishers Weekly. Her 2013 debut novel, “Fifty Shades of Dorian Gray” received laudatory blurbs from the likes of Fred Armisen and Ken Kalfus, and was published in the US, UK, France, and Russia — though nobody knows whatever happened with the Russian edition! She has an affinity for Twitter.

Gold Inching Toward Record Levels
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