InvestorQ : Can we see gold again reaching the high levels globally that it had last touched in year 2011?
Archita Jajjoo made post

Can we see gold again reaching the high levels globally that it had last touched in year 2011?

Answer
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Rashi Mehra answered.
5 months ago


Gold has, for long, been the safe haven asset and the natural choice in times of uncertainty. It has been in the midst of a rally for some time now and is approaching the original peaks made in 2011. The question is whether it can break the level? Gold has already extended its rally to hit the highest level in more than seven years on concern that the Coronavirus pandemic would have a devastating effect on the global economy. These are the times when money automatically gravitates towards gold as an asset class. Gold has skyrocketed after the virus pushed economies into recession and spurred central banks and governments to launch unprecedented stimulus. Gold, after a brief fall, has staged a smart recovery. Gold futures are approaching $1,800/oz after trading in the $1,400/oz range just a month ago. Gold has rallied more than 40% in the last 15 months. A large number of banks including UBS have boosted price targets for the metal. Their argument has been that easier monetary policy, other stimulus, and lower real interest rates will support gains in gold as other asset classes lose their sheen. One signal of a likely rise in gold demand and prices is the global holdings in gold ETFs. Volumes in SPDR Gold Shares surged above 1,000 tons last week.