Gold futures prices soared 1.8% to close at 1931 US dollars per ounce, setting a new record high due to the sharp drop in the US dollar exchange rate and the continued deepening of the new crown virus epidemic.

Gold futures prices closed sharply on Monday, setting a record closing record again. The reason was that investors continued to worry about the global economic situation that was hit hard by the new crown pneumonia epidemic and the weakening of the U.S. dollar, as well as whether the stock market’s upward momentum could continue. Go down?

The price of gold futures for August delivery on the New York Mercantile Exchange surged by US$33.50 to close at US$1931 per ounce, an increase of 1.8%. The intraday hit a high of US$1,941.90 per ounce, which means that the price of gold hit a record based on the main contract. It reached a new intraday high and broke the previous record of US$1,923.70 per ounce set on September 6, 2011. In the overall trading last week, gold futures prices have risen by 4.8%, the largest single-week percentage increase since the week ended April 9. Some analysts believe that the price of gold will soon exceed the $2,000 per ounce mark as never before.

Stephen Innes, chief global market strategist at AxiCorp, said in a research report to clients: “As people continue to see further suspension measures related to the new crown virus pandemic, the dollar exchange rate has fallen, and real interest rates continue to fall sharply. And worry about the intensification of geopolitical tensions, all the fundamental drivers of today’s goal ($2,000 per ounce) are the new stimulus package.”

The dollar exchange rate plummeted on Monday, supporting the price of gold. As of the close of the gold futures market on Monday, the Intercontinental Exchange (ICE) U.S. dollar index, which tracks changes in the exchange rate of the U.S. dollar against six major international currencies, fell 0.8% to 93.64. So far this month, the index has fallen by 3.8%. Under normal circumstances, a fall in the exchange rate of the U.S. dollar will cause the price of dollar-denominated commodity futures such as gold and crude oil to rise, because investors holding other currencies will have lower costs for buying these commodities.

“Given the pessimistic view of the U.S. economic outlook and the view that Europe will have a macroeconomic advantage over the U.S., it is not surprising to see that the exchange rate of the U.S. dollar has reached a new low as a result, thereby pushing the price of precious metals upward. “Zaner Metals analysts wrote in a report released on Monday. The report further stated: “It’s no surprise that investors have also increased their bullish bets. It is reported that last Friday gold (exchange-traded funds) bought 1.76 million ounces of gold, while silver exchange-traded funds bought 910 Ten thousand ounces of silver.”

Zaner Metals analysts also stated that the gold market “continues to receive a lot of bullish media coverage, which may further encourage the bull market and may lead to more small investors getting to know precious metals exchange-traded funds for the first time.” They added: “ Another bullish force is the gradual rise in market expectations that the Fed will take action. The reason is that weak US economic data and the endless threat of (coronavirus) infection are starting to dampen market sentiment. We suspect that the Fed is now very keen to cushion the new market. A round of government shutdown concerns.” The Federal Open Market Committee (FOMC) will announce monetary policy on Wednesday.

Investors have always been worried about the epidemic in the southern states of the United States, and with the return of the virus, Spain has become a new hot spot, especially in the northeastern part of Catalonia. The British government relisted Spain in its list of countries deemed unsuitable for travel and ordered British tourists to quarantine for 14 days after returning from Spain.