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| photo: Reuters
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The price of gold rose to $ 1944.71 an ounce on Monday. It later lost some of its profits and rose 1.7 percent to $ 1,934 shortly before 8 a.m. CET. The current record from September 2011 was about $ 1,921.
Since the beginning of this year, the price of gold has gained over 27 percent. “Uncertainty is now growing globally due to the growing risk of the second wave of the coronavirus pandemic and growing geopolitical tensions, especially the continuing deterioration in relations between the world’s two largest economies, the United States and China,” said Lukáš Fundanda, chief economist at Czech Fund.
Source: Investing.com
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The United States today announced the closure of the consulate in the Chinese city of Chengdu, which Beijing ordered last week in retaliation for the closure of the Chinese consulate in Houston. Sino-US relations are now the worst in decades, according to Reuters.
Gold also benefits from interest rate cuts and other stimulus measures by central banks to help the economy overcome the negative effects of coronavirus. Low interest rates reduce the disadvantage of gold over interest-bearing investments such as bonds. Demand for gold is also supported by the weaker dollar, which reduces the price of gold in dollars from the perspective of holders of other currencies.
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