Gold prices continued to break records today, surpassing $ 2000, for the first time in history. The price of the precious metal reached 2031.14 dollars an ounce (about 31 grams) on the London Stock Exchange, after it crossed the two-thousand-dollar barrier the night before, due to the weak dollar and bets on more stimulus measures to revive the economy hit by the Corona pandemic, and the very low interest rates.
The price hikes are largely driven by economic uncertainty caused by the Corona pandemic, as investors resort to gold as a safe haven.
Since the beginning of the year, the price of gold has increased by 33%, and experts are still expecting a further increase. The demand for gold has also increased in light of the weakening dollar, as the metal, which is traded internationally in dollars, has become cheaper in global markets outside the United States.
"The square is ripe for gold to continue to jump to higher levels," Paul Spong, strategist at Sprote Inc., said in a report. Gold futures in the United States rose 0.9% to $ 2039.40.
IJ Markets analyst Kyle Roda added: “The dollar’s decline and the nominal returns, as speculation about global growth and the financial crisis in the United States are still driving the price of gold mainly.”
He continued: «The outlook remains very strong for gold. The interesting thing is that we saw traders reduce their exposure to credit during the recent rally, which indicates that new buyers may return to the market to push prices up.
Edward Moya, senior market analyst at "Oanda Brokerage," added that "prices may rise towards the level of $ 2,300 by the end of the year."