Gold: Record high is getting closer

The gold price has increased bit by bit in recent months. The precious metal is currently trading at a good $ 1,800, the highest since the end of 2011. A new 52-week high was reached just a few days ago at $ 1,817.57. In the meantime, even the record high is not far away. This was marked at $ 1,921 in September 2011.

Calculated in euros, the gold price had already reached a new record high of 1,633 euros in May. Today, the troy ounce is traded for 1,599 euros. The main price drivers for gold are concerns about the economic consequences of the corona crisis and the extremely loose monetary policy of leading central banks. Investors sometimes fear that the enormous flood of money could sooner or later lead to rising inflation. Gold has traditionally been used to protect against inflation.

 

Into safe havens?

“The fear of the consequences of the further increase in corona numbers is driving investors to safe havens,” said Alexander Zumpfe, precious metal trader at the Heraeus trading house, describing the mood on the market. In the financial markets, the high number of new infections in the USA and in South America in particular creates a nervous mood.

In addition, investors remain concerned about the economic consequences of the corona crisis. The EU Commission recently warned that the recession in the eurozone is likely to be stronger this year than previously thought.