Gold breaks through the $1 800 barrier for the first time since 2011

JOHANNESBURG – The spot gold price on Wednesday breached the psychologically important level of $1 800 (R30 742) an ounce for the first time since 2011, underscoring the strong demand from investors amid Covid-19 pandemic concerns. 

The jump in the bullion price, which closed at $1 823.40 an ounce, has been long coming after it gained 15 percent from about $1 580 in January as investors bet on further printing activity from central banks.

On Tuesday, gold closed at  $1 802.70 an ounce.

The metal has emerged as a safe haven for investors as Covid-19 threatens to plunge the global economy into a recession. 

Bullion has also surged in response to the aggressive Covid-19 response by global central banks, including the US Federal Reserve, which announced limited quantitative easing programmes.