GOLD hit a fresh all-time high today, toping $2000 an ounce for the first time as investors continued to seek a haven safe from the virus crisis.
Bears say since it doesn’t pay a divi and has no practical use beyond perhaps as a weapon to hit intruders, a bar of gold should not glitter.
Gold bugs insist it has further to go given global turmoil and note banks are still advising top clients to buy it and other precious metals as a hedge against inflation they assume is right around the corner.
Giles Coghlan, chief currency analyst at HYCM says: “To me, 2020 will be known as the year of the gold rush. Its spot price has increased by 32% since the beginning of the year. and finally broken $2,000. This an astounding performance, and naturally has people questioning just how high the price of gold will go. Momentum and confidence is high, and I get the impression that people are keen to see how how the price of gold can go.”
Peter McGuire from XM.com said he sees gold reaching "$2,200 by Christmas" with silver, platinum and palladium also set to see gains.
In London, equity markets remain sluggish, though the FTSE 100 is managing to keep its nose above 6000, just.
The FTSE 100 was up 63 at 6098, while the more UK focussed FTSE 250 was up 192 at 17500.
The 250 miners such as Hochschild, up 23p at 300p, and Ferrexpo, up 20p at 202p, led the show.
Booze giant Diageo kept falling, down another 50p at 2672p.
The airlines showed some life, BA owner IAG leading the risers, up 13p at 189p. Jet engine maker Rolls Royce enjoyed the ride, up 9p at 255p.
Soft drinks bottler Coca-Cola HBC gained 85p to 2117p after saying it had recovered from April lows It might have a good late summer yet.