Gold Hits $2,000 & Beyond!

Gold Hits $2,000 & Beyond!

Gold has topped $2,000 an ounce for the first time ever as traders look for safe havens amid the pandemic.

The yellow metal is now higher by more than 30% in 2020, supported by a weak US dollar, low yields, and hopes for more stimulus measures.

Gold prices are likely to continue their upward journey as the price has broken a major psychological resistance level. 

The Reasons Behind This Crazy Jump in Gold
  • The coronavirus pandemic remains ongoing, and the impact of COVID-19 on the global economy is likely to remain in place beyond the duration of the pandemic, even when the vaccine is available. 
  • Fears of the second wave of Coronavirus infections which could force countries to close again and impose lockdown restrictions. 
  •  The escalation tensions between the world's two largest economies remain in the atmosphere.
  • Finally, traders piled into safe-haven assets on hopes that another US stimulus bill is in the works. A bill could put further liquidity into markets and weigh on rates, supporting the commodity.

The Sky is the Limit!

Gold has all the reasons to climb even higher, considering the weakening US Dollar, expectations for inflation, and the unprecedented levels of monetary stimulus from governments and central banks all around the world. 

The driving factors for the precious metal are widely expected to stay for a while longer, and gold prices are likely to continue to shine for some time. 

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