Gold continues to fly at record highs

The price of gold broke a new all-time high in Asia on Tuesday, erasing that of the previous day, still benefiting from its status as a safe haven in times of pandemic and dollar weakness.

The price of an ounce of gold rose to $ 1,981.27 on Tuesday morning during trading in Asia, beyond its peak the day before ($ 1,945.72), which had already marked a absolute record and erased the previous one, dating back to 2011.

• Read also: Gold reaches new historic highs

At around 6 a.m. universal time on Tuesday, gold had fallen back to around $ 1,942 an ounce.

The price of the yellow metal has appreciated by more than 25% since the start of the year.


The crisis and the great uncertainties linked to the pandemic, the ultra-accommodating policies of the central banks which are still lowering bond interest rates and the weakness of the dollar are currently benefiting this safe haven par excellence.

Since the gold market is denominated in dollars, a decline in the US dollar makes bullion less expensive for buyers using other currencies.

However, the greenback has weakened significantly in recent months under the effect of the broad monetary easing policy of the US Federal Reserve (Fed) put in place to support the US economy shaken by the coronavirus.

.

Share on facebook
Facebook
Share on pinterest
Pinterest
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.