Gold Passes $2,000 An Ounce For First Time In History As Investor Fear Grows

On Tuesday the price of gold passed $2,000 an ounce for the first time in history, driven by continued fears of the economic impact of the coronavirus pandemic, and rock-bottom bond yields. The precious metal surged even higher overnight, and is currently trading north of $2,030.

The price of gold has surged by more than 30% year-to-date, with the pace of that increase picking up sharply in mid-July as Covid-19 cases in the US surged. State Street Global Advisors’ SPDR Gold Trust (GLD), the largest gold ETF, has taken in close to $20bn in net new assets in 2020 so far, taking its assets under management to $77.4bn.

In corporate news, Ford announced that it is replacing its chief executive, its fourth in the past 10 years. Current COO Jim Farley will take over from current CEO Jim Hackett on 1 October, after a three-year reign for Hackett during which time Ford lost close to 40% of its market cap. He was brought in to streamline the firm’s operations and increase profits, on which scores he has delivered mixed results, according to The New York Times. Some of the fruits of Hackett’s time in the hot seat will come to fruition after he leaves the firm, such as the Mustang Mach E electric SUV and new Bronco series that brings back a classic brand.

Novavax investors experience whipsaw after a misleading report on Covid-19 vaccine

All three major US stock indices finished higher on Tuesday, after reports that Democrats and Trump administration officials have had productive meetings on a new stimulus package. In corporate news, investors in Novavax (NVAX) faced a wild ride in late trading after the company reported data on the Covid-19 vaccine it is developing. The vaccine generated huge antibody responses in test subjects, but investors were thrown by an exaggerated media report on side effects. After hours, the stock fell by more than 30% as investors reacted to the report, then surged back to a 10% gain. The company’s share price is up more than 3,000% year-to-date due to its involvement in developing a COVID vaccine.

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