[Asia Economy Reporter Jeong Hyunjin] International gold prices have surpassed $2,000 per ounce for the first time in history. Due to concerns over an economic recession caused by the novel coronavirus disease (COVID-19), a weak dollar, and inflation possibilities, gold prices have been soaring endlessly, with forecasts suggesting they could rise as high as $3,000. The large-scale explosion accident in Beirut, Lebanon has further heightened geopolitical tensions, which is expected to drive gold prices even higher.
According to Bloomberg on the 4th (local time), August delivery gold on the New York Mercantile Exchange closed at $2,011.2 per ounce, up 1.79% ($35.20). December delivery gold also closed at $2,021.0 per ounce, up 1.75% ($34.70) from the previous day.
This is the first time gold prices have surpassed $2,000 per ounce based on the closing price. On the 24th of last month, gold prices broke the previous all-time high record of $1,891.90 (August 22, 2011) after 9 years. It then crossed the $2,000 mark within a week. As economic uncertainties such as the prolonged COVID-19 crisis increased, demand for gold as a safe-haven asset exploded, causing gold prices to rise more than 30% this year alone.
The market expects gold prices to rise further. Goldman Sachs forecasts $2,300, while RBC Capital Markets expects $3,000.
As gold prices rose, the World Gold Council also revealed that $7.4 billion flowed into gold-related exchange-traded funds (ETFs) last month alone. For the first half of the year, a record $40 billion flowed into gold ETFs.
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