New records - Corona leads markets

Published on: 06-Aug-2020
Category: Trading
Last updated: 06-Aug-2020

New records - Corona leads markets

Shortly after last gold's record high last week, the price shot up even further. On Tuesday evening, the price cracked the $ 2,000 mark for the first time in its history and was able to expand the increase even further. On Wednesday, the price per troy ounce was $ 2039.22 and today on Thursday it is quoted at $ 2049.32. This is an increase of 30 percent since the beginning of the year, which the banks UBS and Goldman Sachs only expected within a year. Before the pandemic started in March, an ounce of gold was worth $ 1,500. The gold price has also set a new record in euros at 1,727 euros per ounce.

The fear of inflation is driving investors into gold investments. The precious metal is used to protect against inflation, because the corona pandemic has significantly increased the risk of currency devaluation. The central banks keep pumping money into the markets and the production downtimes are causing a smaller supply. This can lead to an increase in the money supply and ultimately means the beginning of inflation. As in previous crises, the investment in gold is looking for a safe haven. It remains to be seen how long the high course will hold.

A new record was also broken on Wall Street. The Nasdaq tech index is currently up half a percent at 10998 points and has surpassed the 11000-point mark on Wednesday. This also continues a trend that, like the price of gold, has developed with the crisis. The other major Wall Street indices were also able to take advantage of the last day of trading. The US leading index Dow Jones rose 1.4 percent to 27202 points and the broad-based S&P 500 gained 0.6 percent and stands at 3328 points.



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