Investors are overwhelmed by the gold rush. The market of precious metals suggests lucrative investment opportunities, but gold stands out from all the rest with its stellar rally. Being a traditional safe haven asset, gold benefits from global headwinds.
Shelter assets rise in value amid escalating economic and geopolitical jitters. Besides, the COVID-19 pandemic is the Black Swan event that adds to the overall uncertainty. No wonder investors are flocking to gold to protect their savings. Over a few months, gold has been extending a winning streak amid a variety of negative factors. The pandemic-driven crisis is the main culprit. The lingering trade conflict between the US and China, the common stance of leading central banks on low interest rates, plus the painful Brexit also create fertile soil for a gold rally. On the week ended August 7, gold skyrocketed to the all-time high, having surpassed the level of $2,000 per troy ounce. The last time when gold logged such a rapid rally was 2011.
One thing is certain. The global economy will hardly overcome the doom and gloom in the near future. Thus, gold seems to be trading at elevated levels for long. Experts at Goldman Sachs predict that the precious metal is likely to get stuck at the levels above $2,000 for the rest of the year.
