Gold soars to record high; some see correction soon

Uma Devi

Published Wed, Aug 5, 2020 · 09:50 PM

Singapore

GOLD prices passed the US$2,000 per ounce threshold on Wednesday - a new record for the precious metal. With this, gold has now rallied over 30 per cent this year as the economic stress of Covid-19 continues to weigh on investor sentiment. But some market watchers are warning that a price correction is due.

"The angst of what lies ahead is driving the US yields lower and propelling gold higher," said Stephen Innes, AxiCorp's chief global market strategist.

Mr Innes is among those who believe the gold rally has legs as interest rates should stay lower for longer. "The economic damage is done, and even a vaccine is not going to bring back US$80 billion in global GDP (gross domestic product) …