After Covid-19, just how high will prices go in the 2020 gold rush?

The Guardian
Gold Bards Covid-19 Getty images Bloomberg The Guardian | James Alexander Michie

In the five trading days to 3 August the total volume of gold traded was 251m ounces, worth £133bn. Photograph: Bloomberg/Getty Images

The precious metal has passed $2,000 an ounce and analysts believe it will rise a lot further

The price of gold soared to a record $2,047 (£1,538) on Wednesday as investors panicked by fears of a second wave of the coronavirus pandemic rushed to buy the yellow metal as a safer place to store their wealth.

The gold price has risen by 34% since the start of the year, and this week broke through the $2,000 an ounce barrier and kept rising, as investors worry about Covid-19, as well as rising geopolitical tensions and the weakening of the US dollar.

Ruth Crowell, chief executive of the London Bullion Market Association (LBMA), said that in the past week more gold has been traded every day than ever previously recorded — by some distance.

On Thursday 30 July, she said, a total of 89.36m ounces, valued at $174bn, had changed hands. In value terms that was more than 50% higher than the previous record.

In the five trading days to 3 August — the latest figures available — the total volume was 251m ounces, worth $490bn. The gold price has been set at daily auctions at the LBMA in the Royal Exchange since 1919.

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Source: Rupert Neate | The Guardian

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