Gold
prices skyrocketed to a new all-time high on Monday amid market jitters with
the rise in coronavirus cases in several countries and elevating tensions
between the United States and China.

The
intraday gold prices recorded the highest level ever today at $1945.24 an ounce
after it opened trading today at the level of $1901.94 per ounce, recording
their seventh consecutive session of gains.

In
September, 2011, gold set a new zenith at $1920.80, following consistent haven demand
after the global financial crisis and the European debt crisis.

Mainly,
tensions in financial markets result in higher demand on safe havens, led by gold,
which also took advantage of the drop in the U.S. dollar.

China
has recorded the highest daily increase in new coronavirus cases since April
,
where new Covid-19 outbreaks in Asia yielded in local lockdowns.

The
UK government has imposed 14-day quarantine on visitors returning from Spain,
while reiterated that other countries are under review.

On
the other hand, tensions between Washington and Beijing intensified after China
said it had seized the buildings of the US consulate in the southwestern city
of Chengdu
, in retaliation to the U.S. closing of the Chinese consulate
in Houston, Texas.

Meanwhile,
the US dollar is suffering from a decline against the major currencies, as it
recorded its lowest levels since September 2018, while extended its losses for
a seventh straight session.

The
dollar index, which measures the performance of the federal currency against a
basket of major currencies, slipped to a low of 93.68, while it opened today’s
trading at the level of 94.23.

On
Wednesday, the Fed is highly predicted to soften its stance on inflation, which
means holding interest rates at the current low levels for longer period.

It
is important to take into consideration that generous stimulus by central banks
worldwide have boosted demand on gold as an inflation hedge.

Silver took the same
foot prints of gold, jumping more than 7 percent to a new record high at $24.59
an ounce.

LEAVE A REPLY

Please enter your comment!
Please enter your name here