Gold rally surges past $2 000, rand draws support from dollar weakness

JOHANNESBURG – Gold was the talk of the markets as the precious metal surpassed another major hurdle reaching $2 000 per ounce for the very first time on Tuesday.

This $2 000-an-ounce mark, according to market watchers, is a significant psychological resistance level, with gold’s 49-year trend channel resting just below at $1 983 per ounce.

Chairperson of The South African Gold Coin Exchange and The Scoin Shops, Alan Demby, said the rally was being driven by the market sentiment that gold would hold its value better than other assets, amid fallout from Covid-19, central bank stimulus, inflationary concerns and a weakened dollar.

This backdrop is enhancing safe-haven demand for the yellow metal.

“Bullion has surged more than 30 percent so far this year to a record high and is one of the best-performing assets in 2020 as a result of increased safe-haven demand during these uncertain economic times,” said Demby.