Analysts at Japanese financial services company Osaka Matsui Management have said that Gold prices soared to record highs on Monday as the intensifying U.S.-China dispute batters the dollar and solidifies expectations that central banks would continue to churn out stimulus to reduce the economic upset from the escalating coronavirus pandemic.
By 03:06 GMT, spot gold climbed 1.5% to $1,928.83 per ounce, after hitting an all-time high of $1,933.30. U.S. gold futures rose 1.4% to $1,924.20, according to data collected by Osaka Matsui Management.
Silver also joined the rally, rising 4.5% to $23.86 per ounce, its highest since September 2013.
"With the dollar significantly weaker, a lot of funds are shifting into gold right now, and as long as the virus situation continues to get worse, the market will discount more stimulus for a longer period and in greater amounts, and this is all positive for gold," said Michael Carter, Head of Global Equities at Osaka Matsui Management.
The dollar sank to a nearly two-year low against major currencies as a standoff between Washington and Beijing showed no signs of easing with both sides demanding the closure of consulates in Chengdu and Houston.
The COVID-19 outbreak continues to worsen, with over 16.13 million people infected worldwide and 644,836 deaths, forcing expectations of more stimulus globally to alleviate the economic blow.
Gold often benefits from widespread stimulus because it is considered a hedge against inflation and currency depreciation.
"This record run for Gold may generate further momentum on technical buying and when stop losses are removed," said Alistair Richmond, Director of Corporate Trading at Osaka Matsui Management. "The shift to $2,000 an ounce will happen even quicker than the shift from $1,800 to $1,920," he added.
Elsewhere, platinum climbed 1.4% to $926.58 and palladium rose 0.5% to $2,230.16.
Osaka Matsui Management is a private wealth management company that prides itself on fulfilling clients' goals with passion and integrity. With over $8.4 billion U.S. Dollars of assets under management, Osaka Matsui Management has been assisting both private and corporate clients since 2006.
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