LONDON: Gold reached above US$1,800 an ounce on Wednesday (Jul 8) for the first time since 2011, with the precious metal benefitting from its haven status as the coronavirus outbreak triggers global economy fears.
Gold hit US$1,800.86 an ounce around 0830 GMT on the London Bullion Market, the highest level in 8.5 years, as a weaker dollar also makes the metal priced in the US unit attractive to investors.
“It is little surprise that the original safe haven is continuing its rally,” said Carlo Alberto De Casa, chief analyst at ActivTrades.
“Investors are still buying stocks but it seems they want to be covered in case of any market correction.”
Neil Wilson, chief market analyst for Markets.com, said gold was winning support also thanks to fears of high inflation caused by central bank stimulus to prop up the global economy.
“The gold bull thesis rests not only on the requirement for safe assets given the economic uncertainty, but also longer term on fears of a surge in inflation caused by the massive increase in the money supply,” he said in a client note.
Gold’s record-high stands at US$1,921.18 an ounce.