Gold nears $1,800 as demand for safe haven assets surges

Concerns over the rise in coronavirus infections fuelled the precious metal's rally

A customer checks out gold jewellery at a store in Dubai. The precious metal has rallied 17 per cent this year as investors increasingly turn to gold as a store of wealth. Getty Images

Gold futures edged closer towards $1,800 an ounce – a level last seen at the end of 2011 – as demand for haven assets surged amid concerns over rising coronavirus infections.

Bullion rose as deaths surpassed 500,000 worldwide and confirmed cases exceeded 10 million, according to Johns Hopkins University data. The increasing numbers are a chilling reminder that the deadliest pandemic of the modern era is stronger than ever.

The precious metal has rallied 17 per cent this year as governments and central banks implemented stimulus measures to aid economies battered by the pandemic. Investors are increasingly turning to gold as a store of wealth, and banks including Goldman Sachs Group now forecast it will hit a record $2,000 an ounce in 12 months.

Gold futures on the Comex rose as much as 0.6 per cent to $1,790.40 an ounce, near the highest level in more than seven years, and traded at $1,788.30 at 10.20am UAE time. Investors are also piling into bullion-backed exchange-traded funds, with global holdings at an all-time high.

Among other main precious metals, spot silver climbed 0.5 per cent, platinum gained 0.3 per cent and palladium added 0.3 per cent.