PRESS ROOM
Gold surges past $1900/oz on economic and geopolitical risks
Tuesday 28th July '20
Gold is trading at record highs of $1943/oz (as of 27 July) making a sharp ascent in recent days. Several pertinent risks are driving investors towards traditional safe havens including gold:
1. Second quarter earnings may disappoint Wall Street
2. COVID-19 infections are still on the rise and vaccine hopes may be premature
3. Second quarter economic growth data for the US and Europe could serve as a reality check for risk assets
4. Tensions between China and the US are on the rise
With equities finding support from central bank stimulus, it appears that investors are turning towards gold as a put option to hedge their equity exposure in the face of the above risks.