Gold Jumps Toward Highest Settlement in History

Taarek Refaat

Gold prices seem to extend the winning streak for the fifth consecutive session on Thursday, bringing the precious metal a tumultuous distance from the historic high of around $1900 an ounce, highlighting the frenzied demand for a safe haven amid the worst pandemic in more than a century.

“Obviously, no one knows if it will get there, but momentum is certainly bullish, and the fundamental backdrop is still supportive. If gold gets to its 2011 record high, who is to say it can’t go to $2,000 next?,” wrote Fawad Razaqzada, market analyst at ThinkMarkets.

James Hatzigian, chief market strategist at Ploutus Capital Advisors attributed the metal's rally to a combination of a weaker dollar, which is approaching its lowest levels in March this year, and the need for a new stimulus.

A week dollar is pushing investors to flee into assets that are a hedge against inflation, such as gold and other inflation-protected securities, Hatzigian added.

In the Egyptian market, prices increased during Thursday's trading in conjunction with the global rise in the price of an ounce and reaching $1884, according to Ehab Wasef, deputy head of the gold pision at the Cairo Chamber of Commerce.

The metal's August delivery rose $7.40, or 0.4%, at $1,872.50, after the metal gained 1.5% in the previous session.

Wasef added that the price of 24K reached EGP 958.85, while 21K reached about EGP 839, while the 18K scored about EGP 719.15.

He pointed out that the gold coin recorded EGP 6712, noting that the current prices are the highest in history of the Egyptian market.

Globally, gold prices reinforced their gains for about $ 20 during Thursday's trading, to be near its highest level in 9 years amid increasing tensions between the two largest economies globally and with anticipation of economic data.

In 2011, the yellow metal closed on its highest settlement on record at $1,891.90 from August of that year.