Skip to main content

Gold price surpasses $1,860, highest since 2011

Gold prices kept their upward momentum on Wednesday, stretching past the nine-year peak set during the previous trading day, as investors continue to place bets more stimulus measures to ease the economic impact of the coronavirus pandemic.

Spot gold was up 1.0% to $1,860.43/oz by 11:30 a.m. EDT, after reaching its highest since September 2011 earlier in the day at $1,864.90/oz. US gold futures were 1.3% higher at $1,867.40/oz in New York.

“The fact that governments, central banks and pretty much everyone else are looking to more fiscal and monetary policy inputs is helping drive the yellow metal,” Michael Hewson, chief market analyst at CMC Markets UK told Reuters.

“With equities struggling to push higher, gold is likely to test $1,900/oz over the next few days and weeks,” Hewson said, adding that “only an improvement in the pandemic situation and the economy could stop gold’s bull run.”

Bullion has surged nearly 22% this year and is now within $70 of an all-time high, bolstered by low interest rates and waves of government stimulus to revitalize virus-hit economies.

Deepening negative yields in the US Treasury market are fueling gold’s recent rally, with five year treasuries currently yielding -1.15% once the effects of inflation are stripped out, a seven-year low.

“Gold is a superior form of purchasing power protection and as real rates dive significantly below zero here, gold is relatively more attractive as a hedge,” said Sprott Inc. CEO Peter Grosskopf.

“The damage inflicted to the dollar as a result of fiscal spending and falling real interest rate due to monetary easing provide bullish factors for gold,” said Yuichi Ikemizu, head of the Japan Bullion Market Association. “As long as this environment continues, gold will continue to rise.”

So far this year, investors have poured record amounts into gold-backed exchange-traded funds (ETFs), increasing their holdings by 28% to more than 105 million ounces according to data compiled by Bloomberg, taking the total value to $195 billion.

Silver boon

Silver is also posting a significant bull rally as the driving forces behind gold spill into other precious metals.

Spot silver jumped more than 8% on Wednesday — the biggest gain since March — an

d has been getting an added boost from supply concerns and optimism about a rebound in industrial demand.

Trading at more than $22/oz, the spot price has gained 14% in the past week and is near a seven-year high.

Silver for September delivery also rose as much as 8.3% on the Comex to $23.35 an ounce, the highest for a most-active contract since 2013.

“In the very short-term term the direction is still upwards,” Carsten Fritsch, a Commerzbank AG analyst, said of gold and silver. “You see that prices continue to march higher. There might be some setbacks, but these are just brief and short-lived and are being used as a buying opportunity.”

Comments

Popular posts from this blog

Nestlé Ghana Limited Wins Overall Best Industrial Company Of The Year at 13th AGI Industry & Quality Awards

  Nestlé Ghana Limited has been honored with four prestigious awards at the 13th Association of Ghana Industry and Quality Awards ceremony. The event, held in an esteemed setting, gathered prominent figures from Ghana’s industrial sector. Amidst the anticipation, Nestlé Ghana emerged as one of the evening’s notable winners, securing accolades in several key categories. This recognition underscores Nestlé Ghana’s relentless pursuit of excellence and innovation, marking a significant milestone that highlights the company’s substantial contributions to the manufacturing industry in Ghana. Nestlé Ghana's exceptional performance was acknowledged with the following awards: Overall Best National Quality Award, Diamond Category (Food) Overall Best Practices in Sustainable Manufacturing Best Company (Food Sector) Overall Industrial Company of the Year, affirming its status as a leader not only within the food sector but also across Ghana's entire industrial landscape. This success is a ...

Anglogold Ashanti Obuasi Mine tops 2024 Sustainability & Social Investment Awards

 AngloGold Ashanti Obuasi Mine has confirmed its status as sustainability champions by sweeping nine awards, the most won by a company at the 2024 Sustainability & Social Investment Awards (SSI) held at Movenpick Ambassador Hotel in Accra. The feat comes on the heels of a dominant performance in last year's event where AngloGold Ashanti Obuasi Mine swept seven awards. The SSI Awards organised by Ianmatsun Global Services recognizes the most outstanding sustainability, Corporate Social Responsibility (CSR), Environmental, social, and governance (ESG) initiatives in the country and beyond as well as the best teams and individuals who brought them to life. This year's event, which was the 8th edition, was under the theme "Climate Action Now: Accelerating Decarbonization and Building Resilience". The awards won by AngloGold Ashanti on the night include SSI Company of the Year, Best Company in Women Empowerment (project), SSI Company of the Year ( Environment), Best Co...

Zoomlion Advocates Community & Gender inclusive waste management for Climate Action at COP 29

 Africa's waste management giant, Zoomlion Ghana Limited has advocated for an integrated approach to waste management that considers the interest of community members, women and vulnerable groups. James Deku, a Communications Officer of Zoomlion Ghana Limited made this call at the 29th session of the Conference Of Parties (COP 29) of the United Nations Framework Convention for Climate Change (UNFCCC) at Azerbaijan, Baku whiles speaking on the topic "Community-Driven and Gender Inclusive approaches to waste management for Climate Action ". He said the waste sector is a major contributor of methane emissions which is a potent greenhouse gas causing climate change hence the need to manage waste in a manner that considers the interest of all stakeholders. Zoomlion's waste management model is designed and operated in a manner that considers the interest of all stakeholders. Through a Public Private Partnership (PPP) model, local authorities engage community members in clea...