Gold Spot Price Hit the Highest Level In 9 Years Gold prices are pricing in bullish factors that could push the precious metal prices to a record high in the coming months. The last time the gold prices hit these highs was in 2011 when the gold spot price touched the $1,921. The factors that have stimulated the precious metal prices, especially the gold spot price, are the loose monetary policy, increase in asset allocation among institutional and retail clients, and coronavirus’s massive impact on global growth.
Wall Street Banks on Record Gold Price Predictions
Citibank thinks the spot gold prices can touch the record high against the dollar. The bank feels that in the coming 6-9 months, we will see the gold price reaching a new record high. Citibank isn’t the only major Wall Street bank that holds a bullish view on bullion. Goldman Sachs GS -1.4% and a few other banks also believe that the spot gold price is going to challenge its previous all-time high.
Gold Spot Price Hit the Highest Level In 9 Years
Looking at the performance of gold price, the yellow metal is already up 19% year-to-date. Gold reached the $1,818 price level on June 8th, the highest in nearly nine years. Today, it is trading at 1,810.
In the US, the next round of stimulus talks will begin today. The new stimulus package conversation between Democrats and Republicans is about saving the US economy from stalling. The emergence of the second coronavirus wave has restrained the economic recovery in the US, and the Covid-19 cases are still on the rise. This has kept investors on edge; they are not comfortable holding riskier assets. In fact, many believe that the current stock market rally is mainly due to the stimulus package and loose monetary policy.