Gold surpassed record-high level of $1,700 per ounce
It approached the all-time high level of $1,830 per ounce, a record from August 2011. Moreover, some economists estimate surpassing $2,000 price level soon.
Price of the yellow metal may not stop at $2,000 per ounce. According to analyst Merrill Lynch from Bank of America, an ounce could be traded for $3,000 in the end of 2021. The evolving economic crisis, which is slowly replacing coronavirus crisis, could support such optimism.
History shows that gold price has always grown when there was escalating uncertainty in economy, or when central banks began to release its monetary policies. Almost all central banks in the economically developed part of the world have stated they were ready to release high amounts of money to support economy. Together with fiscal stimulations, it could be trillions of dollars.
During last 20 years, the price of gold has grown roughly nine times. Even when the Federal Reserve System of the U. S. began to strengthen its monetary policy back in 2016, it made no impact on the role of gold. Back then, the gold bounced off the bottom from $1,000 per ounce. So far, gold grew in one fifth this year.