Gold Price Lives Up to Its Name Amid US-China Conflict... Approaching All-Time High

Trading at $1890 per ounce
Safe-haven assets sought amid economic uncertainty

[Asia Economy Reporter Naju-seok] The price of gold has risen for five consecutive trading days, approaching an all-time high. As the novel coronavirus infection (COVID-19) and the US-China trade conflict escalate, there is growing consensus that a new record high is only a matter of time.

On the 23rd (local time), August delivery gold on the New York Mercantile Exchange closed at $1,890 per ounce, up 1.3% ($24.90). This is just $1.9 short of the all-time high of $1,891.9 per ounce recorded on August 22, 2011. During the day, gold prices even reached $1,897.7 per ounce. The intraday record high is $1,923.7 from September 2011.

The Wall Street Journal (WSJ) commented on the rise in gold prices, stating, "COVID-19 is stimulating a gold rush," and noted that "despite recent recoveries in stock prices and other markets, investors remain anxious about the spread of COVID-19 and economic outlook." This indicates that economic uncertainty has led to increased demand for safe-haven assets.

Ray Dalio, chairman of Bridgewater, the world's largest hedge fund, Jeffrey Gundlach, known as the "New Bond King," and Paul Tudor Jones, founder of Tudor Investment, have all emphasized gold investment, citing the increase in bonds amid a global economic downturn.

WSJ also pointed out that investment through gold exchange-traded funds (ETFs) has played a significant role behind the recent rise in gold prices. According to the World Gold Council (WGC), $40 billion (approximately 48 trillion KRW) flowed into gold ETFs in the first half of this year alone, matching the amount invested throughout the entire previous year. The rising trend in gold prices is also boosting silver prices. On the 22nd, silver prices surpassed $23 per ounce, reaching the highest level in seven years.

This content was produced with the assistance of AI translation services.