Gold continues to hunt records
While things have calmed down on the stock markets, gold is becoming a star there. The price of the precious metal currently seems to know only one direction: upwards.
The gold price hunt continues unabated above the $ 2,000. Yesterday the price of the troy ounce had risen to $ 2020, surpassing the almost ten-year-old record. In the morning, the price reached a new high of $ 2034 after the $ 2,000 mark was reached in the evening. Since the beginning of the year, the precious metal has gained about a third in value.
The strongest price driver remains the corona crisis because gold is considered a safe investment given the uncertainties triggered by the pandemic. The global economy is recovering after the global corona crash. However, there is a growing fear that many countries in Europe and Asia are facing a second wave of infections.
These ETFs track the price development of gold
Concerned about the economic consequences of the pandemic; more and more investors are trying to protect their assets by buying more gold. Recently; a weakness in the dollar had also increased demand for the precious metal. Because gold is traded in dollars on the world market, a weak US currency makes the precious metal cheaper in countries outside the dollar zone.
The gold price is therefore almost exclusively driven by extremely strong investment demand. So-called index funds are currently very popular among investors. These ETFs track the price development of gold. In some of these funds, the index providers deposit a certain amount of gold for each share of ETF that investors buy. The inflows into gold ETFs thus increase demand for gold and thus contribute to the price increase. Not only private investors, but also institutional investors pump very large amounts into gold ETFs. The pros are not about securing in times of crisis. Rather, these ETFs are a means for tactical investments in the gold market in order to participate in the price increase.
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