FX.co ★ Gold prices take out their long-standing record

Gold prices continue the upward movement hitting new highs. During the first coronavirus outbreak, the precious metal reached new records. A threat of the second virus wave may push the prices even higher.

Analysis of the trades performed on the New York exchange proved that gold remains the most resilient trading instrument with the status of the safe-haven asset. Gold is likely to continue its rally amid concerns about a new wave of coronavirus. At the beginning of the month, gold futures with delivery in August passed the level of 1,800 dollars per troy ounce and consolidated at 1,808 dollars per troy ounce. It is the highest price since August 2011. Of course, after such a surge, the precious metal lost in value. At the moment, it is trading around 1,800 dollars per troy ounce.

As long as there are risks of the second wave of COVID-19, gold prices will hardly drop. Since the beginning of the pandemic, gold has been reaching fresh highs. In May, its price soared to the highest reading since 2012. Experts at Goldman Sachs are sure that in 2020, the precious metal will appreciate to 2,000 dollars per troy ounce. At the same time, analysts at JPMorgan Chase & Co. suppose that gold is the most lucrative investment in a low-yield environment and do not recommend to switch to other assets.