Gold prices continued to rise globally on Monday morning in Asia and Europe, and set records on the back of concerns that fell in the US dollar, and made the markets search for a safe haven in a hazy environment.
Gold futures rose 1.66%, to 1,928.85. It surpassed the resistance level at $ 1,923.70 an ounce, which was recorded in 2011.
On Thursday, the markets temporarily rose above a 9-year high, to $ 1,927.10 an ounce.
The price of gold in spot transactions (reflecting the bullion price) increased to $ 1,933.60 an ounce, an increase of 1.69%.
Markets rushed to a safe haven with the support of a falling dollar to their lowest levels in more than a year, with hopes of keeping the Federal Reserve on interest rates and stimulus programs at the same spot to rid the economy of the fallout from the Corona virus.
“If we think that the real returns are the federal weapon in fighting the fallout of corona, I see it is only a matter of time before gold continues to rise and continue to rise,” research head of Pepperston Group told Bloomberg.
Corona virus concerns also persisted, and with it concerns about the economic recovery came, indicating an increase in closures. More than 1,000 people died between Tuesday and Friday in the United States, the largest number of deaths since the end of May. A record case number is now at 74,000, on Friday.
At the same time, relations between the United States and China have worsened, creating political instability and pushing investors towards gold. The US Secretary of State, May Pompeo, said at the end of “cooperation,” a policy that has shaped China-US relations for five decades. Both countries have asked their consulates to close, amid accusations of espionage.
The most active futures also moved from August to December, with the highest number of open positions on Thursday. The latest data was not released on Friday. And December contracts touched the level of $ 1,927.10 an ounce on Thursday, outperforming this figure recorded in 2011, and is now trading at $ 1,928
Investors flocked to gold funds with strong growth in the gold center as a safe haven.