Fear of crisis leads to record gold price

Published on: 27-Jul-2020
Category: Trading
Last updated: 27-Jul-2020

Fear of crisis leads to record gold price

The corona crisis and renewed tensions between the United States and China have set the gold price to a new record. The crisis currency costs $ 1940 a troy ounce, more than ever. The ever-increasing precious metal prices also broke the previous record of September 2011, which was $ 1921 per troy ounce. The price of gold has increased by 25 percent since the beginning of the year and has benefited from fears of a possible second wave of coronavirus infections in the past month. This worry has been confirmed above all by the rapid spread of the virus in the United States. On Sunday, 50,000 new infections caused the number of infections to rise to 4.25 million. In Europe, too, the number of cases has increased again in some countries.

The high level of new infections on the stock exchanges in the USA no longer causes prices to drop sharply. The numbers of new sufferers are in the same range as before and therefore no longer shock investors as they did at the beginning of the crisis. The tensions between China and the USA are already being observed by the stock market players. However, the government's Corona aid helps prices remain stable and protect against a recession on the stock exchanges.



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