In fact, the reason why the price of gold soared so much is also traceable. First, it is geopolitical risk. During this period, Sino-US relations deteriorated again, and there were many political conflicts between the United States and other countries, which also caused many people to panic. People continue to buy gold, which also leads to strong demand for safe haven, which leads to rising gold prices and even breaking through historical highs. Some institutions predict that the price of gold will soon exceed $2,000.
Secondly, due to the influence of COVID-19 epidemic, the economic level has been declining. With the outbreak of the epidemic, the US dollar index continued to weaken, and many central banks issued easing policies continuously, and interest rates were close to zero, resulting in excess liquidity. Then in this case, gold is the best value-preserving product. The United States has not done well in epidemic prevention and control, and other European countries have done much better in epidemic prevention and control than the United States, which has also led to the continued depreciation of the US dollar.
Many investors question whether the dollar can serve as the world currency in the future. If the global epidemic is not well controlled, the price of gold will continue to strengthen. In the capital market, the continuous rise in the price of gold has also led to the fiery investment market, and the price of gold in the futures market has been rising. In our real life, the investment in gold jewelry and gold bars has not diminished, and it has been sought after by investors. During the May Day period, many shopping malls100g gold bars were sought after, all of which were out of stock, and some investors bought nearly 2 million gold bars in one breath.