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Gold Price Today: Gold Ups By 25% In Decade As US Dollar Weakens
Gold Price accelerates higher in 10 years this was aided by the US Dollar witnessing its highest decline to the lowest since April 2018. Holdings in bullion-backed exchange-traded funds set an all-time high in October.
Brandnewsday gathers that Gold reaching a new height in December 2020 with a gain of 25%, marked its best annual performance in a decade.
Aside from the general stellar performance in 2020, gold also witness its new record highs of above $2,050 in August. And after consolidating just below $1,900 an ounce in December, the stage seems to be set for new all-time highs in 2021, according to analysts.
READ: Gold Spot Prices Shrink As U.S Rolls Out Attractive Economic Data
According to Kitco Metals global trading director Peter Hug, “The 2020 gold high will be taken out. If we get an inflationary surge again, gold north of $2,500-$3,000 is a real possibility until the central banks start to re-tighten. But tighter monetary policies are at least a year away, if not longer”.
On January 1st, 2021, Gold is trading around $1,901.60, up 0.43% on this same day.
Why Gold Price Skyrocket?
Speaking on the metrics behind the Gold Price soar, the main stellar behind the limelight changes in gold is visible for you to recognize. They are the stimulus, loose monetary policies, weaker U.S. dollar, inflation concerns, and currency debasement fears.
Gold Price News
Commenting on the gold news now: ING senior commodities strategist Wenyu Yao said: “Gold managed to trade to record highs this year, with a move to safety amid the uncertainty. Falling yields and a weaker USD only provided a further boost. While vaccine optimism abounds, we still believe gold prices will trend higher next year amid growing inflation expectations and negative real yields”.
This week, gold saw support from a weaker U.S. dollar, with the DXY trading near 2.5-year lows on Thursday.
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