The gold price has reached its highest level since 2012. The price per troy ounce (31.1 grams) was then around $ 1,800 (about 1,661 euros). On Monday, that’s $ 1,764 per troy ounce. The advance of the gold price is a direct result of the corona crisis.
That says Georgette Boele, currency and precious metal specialist at the Economic Bureau of ABN AMRO. “The price hike is in response to US Federal Reserve (Fed) measures and warnings,” said the economist.
Fed Chairman Jerome Powell warned in March of the massive economic impact of the corona outbreak. As a result, Powell announced a support program.
Part of the program is for the Fed to buy unlimited government and mortgage bonds until markets stabilize. Corporate bonds are also bought up. “In March you immediately saw an increase in the gold price,” says Boele.
“Such a support program is causing market turmoil. As a result, investors are returning to gold and the price is rising.” Economic uncertainty is not over yet. Boele: “Traditionally, investing in gold has been a safe haven for investors.”
The absolute record of the gold price is not in 2012, but was achieved a year earlier. On September 6 of that year, the price per troy ounce was $ 1,921.
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