Gold Hits New Record Highs On Currency Debasement, Brexit and U.S. China Risks

By Mark O'Byrne of GoldCore

CEO, GoldCore • May 18, 2020 at 8:52 AM EDT

Gold has surged to new record highs in British pounds at £1,422/oz, is touching near record highs in euros at €1,607/oz and is 1.8% higher this week in dollars to $1,738/oz, near a new 8 year high.

Gold in USD – 3 Days

Gold has surged to new record highs in British pounds at £1,422/oz, is touching near record highs in euros at €1,607/oz, and is 1.8% higher this week in dollars to $1,738/oz, near a new 8 year high.

Gold’s gains on all currencies are due to concerns about the outlook for global economies and global currencies in an era of currency debasement on a scale never before seen in world history.

Other risks have not gone away and are set to rear their ugly heads again. These include major geopolitical, monetary, and systemic risks from the pandemic and attendant global lockdown, from Brexit and risks to the viability of the Eurozone itself, and of course, U.S. China tensions are bubbling over once again.

Gold is consolidating near record highs in euros and is the second-best performing asset (only the 30 year US bond has done better) in the world in 2020 year to date in all currencies.

Gold is 14% higher in dollars,18% higher in euros and 22% higher in embattled sterling year to date.

It is again acting as a hedge and a safe haven exactly when investors need one and most analysts including Goldman Sachs believe it will continue to do so in the coming years with Goldman advising that the case for diversifying into gold is ‘as strong as ever.’

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