Gold Hits Record High of $1800 per Ounce... Currency Value Down · Safe Asset Preference Up

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] International gold prices have approached $1,800 per ounce, reaching an all-time high. As countries around the world, including the United States, engage in quantitative easing, currency values have declined, while investment sentiment toward safe assets has relatively increased.

According to Bloomberg on the 13th (local time), gold prices on the New York Commodity Exchange (COMEX) reached $1,785 per ounce. This marks a steady rise since trading at $1,400 per ounce four weeks ago.

Gold prices temporarily stalled in their upward trend due to the spread of the novel coronavirus (COVID-19), as there was a strong tendency to secure cash rather than gold. However, Bloomberg reported that as the U.S. embarked on quantitative easing and central banks worldwide injected liquidity, concerns over the depreciation of currencies such as the dollar increased, leading funds to flow back into gold.

Margaret Yang, an analyst at CMC Markets in Singapore, said, "Risk sentiment is cautiously turning, and investors are seeking safe havens considering the COVID-19 situation and large-scale financial activities."

Gold traded on COMEX has risen 17% so far this year. As of 11:44 a.m. that day, it was trading at $1,779.30 in Singapore.

Rare metals such as silver, platinum, and palladium are also showing strength.

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