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#COVID19: Gold Climbs To 2012 Highs Due To Coronavirus Fears

by on June 22, 2020
 

Gold futures reached 2012 highs on Monday, continuing its ongoing rally as Coronavirus fears causes major inflows into gold backed ETFs.

With the worrying signs of Covid-19 spreading even as governments plans to restart their economies.

Central banks have also added gold to their monetary support stimulus with the Bank of England’s bond buying rates and also helped by the US Fed programme of keeping rates low.

Investors use gold to hedge against declining rates and monetary uncertainty.

Gold futures rose to just over $1,767.00 by Monday evening, the highest it has been since 2012 rallies.

Year to date, the precious metal is up 16% as Goldman Sachs predicts $2,000 an ounce for the next 12 months.

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Gold traded ETFs had their holdings increase by almost 30 tons last week.

The world’s largest gold ETF, SPDR Gold saw inflows of up to 23 tonnes or 742,492 ounces.

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