By David Brough
Gold hit another record peak on August 5 and appeared well-positioned to move higher due to a weakening dollar and fears over a tightening grip of coronavirus over the global economy.
Gold touched an all-time high of $2,044.34 per ounce, and is up nearly 35 percent so far this year, looking increasingly comfortable above key support of $2,000 per ounce and benefiting from its status as a “safe haven” in times of geo-political turmoil.
Fears over possible inflation, after a wave of monetary stimulus measures by central banks to kickstart economies, will likely underpin gold for some time to come.
The softening dollar, in which gold is denominated, makes gold cheaper to buy in terms of other currencies.
Some analysts believe that the rapid surge of gold to record peaks could trigger profit taking, a correction lower and a period of consolidation.
Disclaimer: Any opinions expressed in this article are solely those of the author and should not be seen as investment advice.