Gold moved to its highest level since 2012, fueled by concerns about the second wave of the coronavirus infections in the United States and Germany.
In other news, the release of details about a proposed national security law from China caused a growing uncertainty in Hong Kong.
Coronavirus cases increased in the United States, a region that stretches from the Atlantic coast of the Southeast to the Pacific coast of the Southwest. Germany’s coronavirus cases surged drastically as well. On the other hand, controls were intensified in Victoria, the second-most populous state in Australia, after a rebound in cases. Following these conditions, the yellow metal received a significant boost.
For its part, China confirmed the proposed national security law would allow Beijing to impose on Hong Kong’s legal system. The action is likely to increase tensions with the White House.
Gold has reached $1,758.83 an ounce
Gold has advanced 15% this year. This occurred because of an unprecedented stimulus to prop up the world economy hit by isolation measures combatting coronavirus. It began its market launch in 2020 at $1,520 an ounce on January 2. Now the yellow metal has reached $1,754 at the close of June 22.
The metal continues to be the subject of positive comments. According to Goldman Sachs Group Inc., gold is forecast to hit a record $2,000 an ounce. At the same time, JPMorgan Chase & Co. said that investors should keep betting on bullion as it is best positioned in a real underperforming environment.
Sean MacLean, an analyst at Pepperstone, said that the markets have been optimistic lately, ignoring bad data and news and betting on a strong recovery. Still, the only thing that the markets could not ignore is a new stagnation of economies and the threat of the second round of restriction measures. We then had a proposed Chinese national security law, which is a tease for the Trump Administration.
Spot gold climbed 0.9% to $1,758.83 and was trading at $1,752.74 in Singapore. Back in the middle of May, prices reached $1,765.43, the highest level since October 2012.
In other precious metals, silver saw a gain of 1.5%. Platinum climbed by 0.6%, and palladium rose 0.2%. Analysts think that precious metals’ prices have the potential for greater gains.
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