The Financial Post reports in its Tuesday edition that gold's unrelenting march higher shows no signs of slowing after a plunge in the dollar swept prices past the previous high set in 2011 and put the metal on track for even bigger gains.
A Bloomberg dispatch to the Post reports that bullion's surge came as a gauge of the U.S. currency sank to the lowest in more than a year, the latest in a long line of bullish factors -- including negative real rates in the U.S. and bets the Federal Reserve will keep policy accommodative when it meets this week -- that are pushing prices ever higher.
With the world facing an extended period of unprecedented economic and political turmoil, gold's now got $2,000 (U.S.) in its sights. Some in the market suggest the haven could rise even beyond that.
Nascent signs of gold's record-breaking ascent began to show in mid-2019, when the Fed signalled a readiness to cut interest rates as uncertainty clouded its outlook. The rally gathered pace in early 2020 as geopolitical tensions rose and the COVID-19 outbreak hurt growth worldwide, pushing governments and central banks to unleash vast amounts of stimulus, and sending real rates slumping further into negative territory.
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