An investment bank reveals China’s relationship with record high gold prices

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07/10 16:40

Gold hit a record high this week, surpassing a record high of $ 1,800 an ounce, and investment bank Goldman Sachs says the yellow metal will continue its winning streak, benefiting from what is happening in China.

China is the largest buyer of precious metal in the retail sector in the world, and it is one of the candidate countries for growth and recovery with its rapid disposal of the emerging corona virus.

The price of gold mainly jumped, benefiting from a second wave of Covid-19 casualties, especially in the United States, which pushed investors to safe havens like gold.

Goldman Sachs expects the gold price to reach $ 2,000 an ounce.

The bank recommended maintaining credit positions in copper, silver, steel and gold minerals which are “less exposed to new outbreak areas, Asia and Europe versus the Americas, and less exposed in the case of outbreaks.”

The total number of new cases of coronavirus in the United States exceeded three million, according to a Reuters survey, while the country announced more than 60,500 new cases, a record for a day.

The increase in buying in safe havens has pushed spot gold prices higher by 18% since the beginning of this year, and gold has surpassed the important level of $ 1,800 an ounce this week, the highest level since September 2011.

Looking to the future, the bank expects prices to average $ 1740 in 2020 and $ 1988 an ounce next year, adding that high inflation and a weak dollar are among the main factors supporting prices.

In a note dated July 9, the bank said that silver was also “approaching an ideal environment” to finally do well, based on engines including the recovery of China-led industrial activities, safe haven purchases and low supplies due to mining disorders related to Covid-19 in the Americas. .

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