By Steve Fiscor
July 27, 2020–Gold closed at $1,936.65 per ounce (oz) on the London Fix — its high level ever. On Friday, July 24, gold closed at $1,902.10/oz, surpassing its previous record of $1,888/oz, which was set in August 2011.
Gold has been on a bull run for about a year now, explained Metals Daily CEO Ross Norman. “In 2019, gold prices climbed 19%,” Norman said. He attributed the increase in gold prices to the fall in the value of the 10-year U.S. Treasury Notes.
“More recently the price of gold has been propelled by the increase in money supply, the increase in debt, and the geopolitical uncertainty that surrounds all of us,” he said. “All of these point to long-term inflation. The planets have aligned for gold and hence we see these all-time high prices.”
Silver has reached similarly high levels recently, closing at $24.50/oz in New York after reaching $22.71/oz on July 24, which was a seven-year high. In March, silver had slumped to a 12-year low of $11.60/oz.
“Silver, which has been lagging and holding back, has accelerated,” Norman said. “It’s up 38% in the last few weeks. Really silver has rallied ahead of gold. Take today for example, gold is up 2%, but silver is up 7.5%. In a way, this move in silver prices is authenticating gold’s rally. If there is too much distance between the two metals, it calls into question gold’s rally.”
Copper prices have also been moving higher for the last two months. After hitting a low of $2.12/lb on March 23, copper climbed $0.80/lb to close today at $2.92/lb on the London Metal Exchange.
