GOLD POISED TO SURPASS HISTORIC HIGH OF $1,900 AN OUNCE
Gold has shown its strength as an asset, beating all other commodities by shooting its price through the roof and threatening to surpass its historic high of $1,900 an ounce.
Paul La Monica of CNN Business on Monday, May 18, 2020 (Tuesday, May 19 in Manila) said that while the price of the precious metal retreated in March 2020 as the COVID-19 pandemic rampaged in the US, China and European Union (EU), gold came roaring back, with the price skyrocketing to $1,750 an ounce, already the highest in eight years.
"If everything stays the status quo, there are significant tailwinds for gold," said Michael Ponikiewicz, a portfolio manager with Acadian Asset Management.
Gold is seen as a safer, steadier place to park money in times of turmoil, and its strong performance this year is in stark contrast to the broader stock market: Gold prices are now up nearly 15% in 2020, while the Dow is down 15% and the S&P 500 has gone south by nearly 10%.
As interest rates go down and punish savers and investors, gold prices would naturally zoom as a safer investment than stocks and other commodities as well as long-term bonds, whose rates have also retreated by 0.7%, La Monica said. #coronavirusimpact