Trading in the precious market unfolds quite briskly, especially when it comes to gold futures. Gold as a safe-haven asset only extends gains amid global markets woes. Therefore, the price of gold per troy ounce has been steadily rising for the past couple of weeks.
According to the New York Mercantile Exchange (COMEX), gold has crossed the key $1,800 an ounce level for the first time since 2011. Then there was a small pullback. Yet, the quotes continue to consolidate near the historical maximum as the overall trend is bullish. Hence, the precious metal has surged by 18.3% since the beginning of the year. The reason why gold continues to spike up is the Fed's QE program. The regulator has already pumped $3 billion into the financial system. Global Chief Investment Officer of Guggenheim Partners and Chairman of Guggenheim Investments, Scott Minerd, believes that in the near future, the Federal Reserve will inject much more money in the economy since the available money supply is still not enough to lower the US budget deficit.
Gold is one of the few assets that has been rising during the pandemic. Besides, it is likely to hit new highs as investors are gripped by fears over the prospects of the global economy. The leading central banks will support its rally as well by expanding their stimulus programs.
