PRESSEMITTEILUNGEN
Gold surges past $2000/oz for the first time ever
Monday 10th August '20
Gold has surged past $2000/oz as pandemic uncertainty continues to dominate the horizon. The precious metal is now up over 34% year-to-date as investors are turning towards gold for both tactical and strategic reasons. Tactical investors are piling into gold futures and exchange traded products as a hedge against short-term risks of further economic damage from the ongoing pandemic. Investors remain aware that a vaccine breakthrough could take several months, and the economic recovery will be slow and difficult in the meanwhile. Equally, strategic investors are cognisant of the potentially inflationary scenario which may ensue once a vaccine is indeed developed but markets remain flooded with central bank liquidity. It might not be easy for central banks to withdraw liquidity very quickly and inflation could tick up. Gold will serve as an effective hedge in such a scenario.