Gold did it!
After weeks of will-it-won’t-it, the yellow metal finally hit an all-time high. Gold prices settled the Monday trading session up more than $33 to around $1,931 per ounce.
The yellow metal climbed to as high as $1,942 in intraday trading before paring some of its gains.
Year-to-date, gold prices have surged 27 percent.
Silver, the sister commodity to gold, was also on a tear to kick off the trading week. The white metal rallied $1.58 to $24.43 an ounce, bringing its YTD increase to 37 percent.
The other metal assets also had a green day.
So, why did gold and silver skyrocket on Monday? A few reasons:
- U.S.-China trade and geopolitical tensions.
- The U.S. government about to approve another trillion-dollar package.
- Federal Reserve stimulus that will trigger a bout of inflation.
- A weaker greenback as the U.S. Dollar Index fell nearly one percent.
- Global economic uncertainty amid the COVID-19 pandemic.
Does gold have more room for growth or will there be a correction? Considering the massive monetary expansion by the Fed and other central banks, gold will go way beyond $2,000 and silver could eventually top its record high of $45.
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