By Pranati Deva Jul 28, 2020 2:03:16 PM IST (Published)
The international gold price raced to a record high earlier today after the deepening COVID-19 crisis has sent the US dollar tumbling and investors moving to safe have to avoid the volatility. The dollar has lost ground against a range of currencies, falling to its lowest level since June 2018. This has sent the yellow metal prices past its previous high hit in 2011 and put it on track for even bigger gains.
The international gold price raced to a record high earlier today after the deepening COVID-19 crisis has sent the US dollar tumbling and investors moving to safe have to avoid the volatility. The dollar has lost ground against a range of currencies, falling to its lowest level since June 2018. This has sent the yellow metal prices past its previous high hit in 2011 and put it on track for even bigger gains.
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With the continued rise in COVID-19 cases across the globe leading to unprecedented economic turmoil, UBS now expects the gold price to cross $2,000 per ounce in the next 6-12 months. Ongoing investment demand remains a key driver behind a higher gold price.
However, it added that strong economic data could keep the rally in check. A weaker dollar is gold supportive, particularly when falling sharply, noted UBS. But due to the negative correlation with equities in risk-averse environments, gold reduced the volatility profile of an equity portfolio, it explained.