This weekend, the price of Gold Approaches hit $2,071, which is almost the highest price in history. Three years ago, on August 7, 2020, during the COVID-19 pandemic, spot gold prices reached an all-time high of $2,072.50 per ounce, almost matching that peak.

Amid Economic Unrest, Gold Flirts With A Lifetime Price High

A single ounce of gold is almost at its historical peak in price, amid good-closing Friday U.S. markets and a jump in the value of the crypto economy. At $2,071.88 an ounce, gold is currently trading just 0.029% below its all-time high, which was reached on August 7, 2020.

XAUUSD price chart (source: TradingView)
XAUUSDprice chart (source: TradingView)

Concerns about the future of the economy grew in 2020, during the height of the unpredictability surrounding the COVID epidemic and the lockdowns that followed. Gold set its intraday peak on August 7 of that year, at $2,072.50 per ounce.

Amid global uncertainty, gold approaches a record high and rises to $2,071 per ounce.

Gold prices are reflecting the current state of uncertainty in the global economy and are attracting investors to this traditional safe-haven asset. The COVID-19 pandemic has subsided, but China is currently experiencing an increase in unexplained respiratory illnesses, including mycoplasma pneumonia.

In addition, the Federal Reserve’s strategy of raising interest rates to combat inflation has increased market volatility and interest rates in the United States, which has increased concerns about a recession.

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Furthermore, yield curve measures indicate a high probability of a recession within the next year, especially when comparing the 10-year and 3-month Treasury rates, which are historically reliable indicators of recessions.

The price of silver is currently much lower than its peak of $49 per ounce on April 25, 2011. A 92% increase in silver’s price would be required to reach its previous peak. According to technical expert Gary Wagner, there is still a significant surge in gold and silver.

Although Wagner admits that both metals will benefit from the current economic climate, he believes that gold will continue to appreciate more quickly than silver.

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