Business

Gold prices surge to record high amid coronavirus worries, US-China tensions


Gold touched record prices as worries over issues such as the coronavirus pandemic as well as U.S.-China tensions weighed on investor sentiment.


We think these three factors, in combination with limited supply growth as miners continue to restrain capital spending, will drive gold prices higher," UBS chief investment officer Mark Haefele told clients Monday.


In a note circulated before the new highs, Commonwealth Bank of Australia's Vivek Dhar said the fall in U.S. 10-year real yields has been the "most important driver" among other factors, such as a weakened U.S. dollar and safe-haven demand being lifted.


Johan Jooste of The Global CIO Office told CNBC's "Street Signs Asia" on Monday that the "opportunity cost of holding gold is virtually zero" with Treasury yields at their current low levels.


In a note circulated before the new highs, Commonwealth Bank of Australia's Vivek Dhar said the fall in U.S. 10-year real yields has been the "most important driver."


Meanwhile, Johan Jooste of The Global CIO Office told CNBC's "Street Signs" on Monday that there's a "horrible feeling of chasing it a bit after the fact" if investors enter the gold market now.






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