Gold price hits record high amid fears over coronavirus crisis

Gold hits record high on haven demand as markets rally sputters

Precious metals such as gold are often considered safe-haven assets, and any sign of uncertainty boosts their appeal as investors rush away from riskier assets such as equity.

Gold prices jumped to record highs on Monday as an intensifying U.S. -China row hammered the dollar and cemented expectations that central banks would continue pumping out stimulus to ease the economic pain from a worsening coronavirus pandemic.

Gold's record run may gain further momentum on technical buying and as stop losses are taken out, said Jeffrey Halley, a senior market analyst at OANDA, adding "the move to $2,000 an ounce will happen much more quickly than the move from $1,800-$1,920".

Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets although sentiment was mixed, with tech gains supporting some Asian stocks.

While governments and central banks have pumped liquidity into the global economy to support the recovery, no measures have been as aggressive as those taken by the USA, where the Federal Reserve cut rates to near zero and printed $2.2 trillion while extending another $5 trillion through loans to banks. Along with Gold, the week's trading session started on a strong foot for silver as well, touching the 8 years high of Rs 64,849.

Similarly, Silver futures too rose in overseas markets, jumping 4.5% to its highest since September 2013 at $23.86 per ounce. "However, a sharp correction is unlikely unless gold prices come under pressure". In Mumbai, the rate was Rs 50,920 for 24-Carat gold, as per Good Returns website.

Protests over Poland's plans to withdraw from treaty against gender violence
The gap for ideological reasons: Poland has announced the release of the Istanbul Convention aimed at combating violence in women. However, the bulk of criticism has come from citizens of Poland, and protests have been cropping up in cities across Poland.

In India, investors' focus is back on surging domestic coronavirus cases that neared 1,436,019, with total deaths standing at 32,812.

"Gold is temperamental too, but not almost like silver", said David Govett, head of precious metals trading at Marex Spectron, adding that the Fed meeting should calm markets.

"Geopolitical tension between US & China and weakness in the dollar supports the bullions".

Orion Advisor Solutions CIO Rusty Vanneman discusses his top ETF sector picks if the us dollar continues to weaken. "Gold may test Rs 52500 levels and silver Rs 66,000 levels soon". "From a 6 months perspective, the price structure suggests strength and we envisage gold to test levels of close to $2000 an ounce in global markets or Rs 55000 per 10gms in the domestic markets", Sugandha Sachdeva, VP-Metals, Energy & Currency Research, Religare Broking said earlier this week.

Gold prices have rallied 29 percent so far in 2020 as stay-at-home orders created to slow the spread of COVID-19 brought the global economy to a screeching halt in the first half of the year.

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