Economic Uncertainty Drives Gold Price To A Record High

Gold bars are stacked in a vault at the United States Mint, in West Point, N.Y., in 2014. The settlement price for gold futures reached a record high of $1,931 per ounce Monday — and many analysts predict the price will head even higher.

Mike Groll/AP

In uncertain economic times, investors tend to put their money in gold. So it's perhaps little surprise that gold prices started to rise at the beginning of the year as the coronavirus started spreading in China and Europe and investors feared a global economic downturn.

Gold prices have soared nearly 30% so far this year. On Monday, the settlement price for gold futures reached a record high of $1,931 per ounce — and many analysts predict gold will top $2,000 by September.

Gold usually rises alongside investors' uncertainty in the economy. It's a "safe haven" for investors who want to hedge their bets against a falling dollar and instability in financial markets, said Lindsey Bell, chief investment strategist for Ally Invest.

And, as long as investors are still unsure about the health of the market, they'll continue putting money into gold, she said.

Read more: https://www.npr.org/sections/coronavirus-live-updates/2020/07/27/895975866/economic-uncertainty-drives-gold-price-to-a-record-high