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Buying Gold Has Never Been More Expensive

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The price of gold has reached a new high. As of Tuesday, August 4, the metal was valued at $2,018.51 per ounce, breaking the $2,000 mark for the first time ever. Fast forward to this morning, and gold peaked at $2,048 per ounce.

According to Business Insider, gold prices have soared due to geopolitical uncertainty and weakness in the dollar.

“While the markets continue on a cautious recovery path, the big move for gold through the $2,000 per ounce threshold is a reminder of the lingering fears over coronavirus and geo-political tensions linked to China,” said analysts at AJ Bell.

Investors have also been focusing on gold as many expect another U.S. stimulus bill to be announced in the near future. This would ultimately support the asset. As Business Insider points out, the prices of bonds rise according to fiscal spending habits, while yields and interest rates are reduced, leaving the dollar weakened. The price of gold would then go up as the supply of the dollar rises faster than the supply of the precious metal.

Some, including Naeem Aslam, a chief market analyst at Avatrade, expect gold prices to soon reach $2,500. “The path of the least resistance for gold is still skewed to the upside and there is enough momentum that can push the gold price toward $2,500,” he said.

For more on the soaring prices of gold, follow on over to Business Insider.



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