Gold price: highest in 7 years

The gold price continues to soar. This means that the precious metal has reached a new high for the current year 2020. Most recently, the gold price was $ 1,636, which was the highest in the past seven years. Converted into euros, the gold price also looks much better. Here, too, one course after another can be clearly seen in the official statistics. The record is currently at 1,516 euros.

The gold price is currently enjoying robust demand and is being driven by it. Gold ETFs in particular have recorded further inflows for 21 consecutive trading days. Speculative investors have also continued to expand their net long positions in this context. There appears to be a well-considered calculation behind taking such strategic measures: both China and other countries could take stimulus measures, such as lowering the interest rate, for the economy. It is based on the effects of the Covid 19 virus, as analysts and economists all over the world suspect.

The corona virus and its consequences for the economy are causing great uncertainty among investors, which is why gold could again see increased demand, says Alexander Zumpfe, commodity trader at the Heraeus trading company. In this context, Zumpfe spoke of an increased demand for gold bars. At the same time, the silver price was also able to record a significant price increase. Previously, a downward trend was more likely. However, silver still lags far behind in a direct comparison with the current gold price. It is difficult to assess how the value of gold will continue to develop. However, the signs for further price increases are extremely good.