Gold breached $1,800 barrier for the first time since 2011
Published On: Wednesday, July 8, 2020 | By: Team KnowMyStock
Gold briefly breached $1,800 an ounce today(8th July 2020) for the first time since 2011 as mounting fears over the fast global spread of the coronavirus sent investors scurrying for safe havens. Spot gold had risen 0.3 percent to $1,799.22 per ounce by 0854 GMT, after hitting its highest since November 2011, at $1,800.18, earlier in the session. US gold futures rose 0.2 percent to $1,812.90 per ounce. European shares opened lower as soaring COVID-19 cases dented hopes of a swift economic recovery.
"Investors are hedging their exposure to riskier assets simply because there's a growing and widening belief that any recovery is unlikely to be v-shaped," said Michael Hewson, chief market analyst at CMC Markets UK.
"Markets generally tend to operate through a prism of optimism and that optimism is being tested at the moment and gold is benefiting from that."
"The health, financial and economic uncertainties generated by the COVID-19 pandemic and its aftermath are likely to continue to support gold's rally well into 2021, but at a reduced level," HSBC analysts said in a note.
Tags: Gold price COVID-19 pandemic
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