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Pandemic pushes price of gold to record high

Published Aug 5, 2020

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CAPE TOWN- Market experts say the onset of the global Covid-19 pandemic has made gold’s relevance as a hedge even more apparent as the precious metal hit $2,000 an ounce for the first time, an increase of over 30 percent.

According to data from the

“Gold increased by 17 percent during the first half of 2020, moving up by an additional 10 percent in July. The most recent price move has come fast which, combined with markedly weak consumer demand, may result in higher gold price volatility in the near term. However, we believe the Covid-19 pandemic may bring structural shifts to asset allocation and that there are strong fundamental reasons supporting gold investment longer-term,” said the organisation.

The increased interest in buying gold, according to the World Gold Council has been driven by a combination of high uncertainty in the economy, low-interest rates, and a positive price momentum.

Silver has also seen an increase in price and demand since the start of the pandemic as the value shot up by more than 30 percent year to date.

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