The yellow metal on Thursday almost touched the $1,900 mark and didn’t look in a mood to halt. The metal is very close to breaking its all-time high mark, set nine years ago amid optimistic signs regarding its demand by experts such as Mark Mobius, co-founder of Mobius Capital Partners.
The demand for the metal is rising day by day amid increasing tensions between the two biggest economies of the world, US and China. Both silver and gold are in a bullish trend, where the silver is heading for its largest weekly increment in four decades, and gold is poised for the continuous seventh week gain, the longest since 2011.
More people are now relying upon the gold to protect their fortune as the resurgence in the corona cases is causing an obstacle in the economic recovery. Crediting the metals trait as a diversified investment in a low rate period, UBS Group AG uplifted its gold price prediction to $2000 per ounce now before the end of September.
Gold prices reached $1898.34 point on Thursday, and the all-time high for the metal is $1921.17, in September 2011. Meanwhile, silver rose 0.3% and touched $22.66 per ounce, and is heading for its longest weekly advance since 1980.
As the uncertainty in the market rises, gold becomes an attractive alternative for investment. Negative real rates, geopolitical unreliability, ambiguous plan for the cost of the health crisis, led by COVID, and continuously weakening dollar have put both gold and silver in a path to their biggest gains ever.