Gold advanced to a fresh record beyond US$2 000 an ounce as investors assessed increased geopolitical risks and the prospect for further stimulus to combat fallout from the coronavirus pandemic.
Bullion is up almost 35 percent this year, with its haven status enhanced by sliding US real yields. Gold could extend gains as governments and central banks respond to slowing growth with vast amounts of stimulus. The metal’s appeal is strengthening as the dollar weakens and a long global recovery looms. Goldman Sachs Group Inc. forecasts a rally to US$2 300.
“The stage has been set for gold to continue to climb higher,” Paul Wong, market strategist at Sprott, said in a report.
“We see increased fiscal spending ahead, extremely accommodative monetary policy in place for years and a challenging economic recovery.”
Spot gold rose as much as 1.3 percent to a record US$2 046.29 an ounce, and traded at US$2 042.63 as of 9:45am in New York. Comex gold futures for December delivery were 1.8 percent higher at US$2 057.40. —Bloomberg.