Spot gold topped $1,900 an ounce for the first time since 2011 and edged closer to an all-time high with flaring geopolitical tensions and concern over global growth driving demand for haven assets.
Increasing signs that the prolonged pandemic is stalling an economic recovery and the recent spat between China and the U.S. are underpinning bullion’s appeal. The metal is also getting support from a confluence of low or negative real rates and a slipping dollar amid massive liquidity injections from governments and central banks worldwide. The weaker dollar and plunging yields on government bonds lower the opportunity cost of owning gold.
