Gold hits all-time high on global jitters
By Julian Satterthwaite | 27 July 2020
Gold prices are at all-time highs as jitters mount over the global health crisis and rising U.S.-China tensions. Julian Satterthwaite reports. Indians are among the world’s biggest buyers of gold. But right now the country’s jewellery stores have gone quiet. Because prices for the precious metal are getting out of reach for most.
Monday (July 27) saw gold hit an all-time high. The spot price touched almost 1,944 dollars an ounce at one point. It’s now up around 28% this year. Gold is often viewed as a safe-haven investment in times of trouble. And right now there’s no shortage of things to worry about.
Investors fear a second wave of the global health crisis. The latest Reuters tally saw global virus cases surge to over 16 million. Traders also cite the rising U.S.-China tensions, which have added to the jitters, and weighed the dollar.
Overnight the greenback hit its lowest since September 2018. Since gold is priced in the U.S. currency, it actually gets more affordable for international investors when the dollar declines. Now many analysts predict gold will keep gaining as long as the outlook remains so uncertain. But they say a sudden breakthrough on vaccines, or a U.S.-China truce, could see prices turn around very quickly.
Reporting by David Randall. Additional reporting by Sujata Rao and Marc Jones in London, Hideyuki Sano in Tokyo and Tom Westbrook in Singapore; Editing by Nick Zieminski and Leslie Adler