Gold Prices Climb 2.1% to Reach $2,042 an Ounce, Close to Record Highs in 2020

On Tuesday, gold prices rose by 2.1% to reach $2,042 an ounce, which is less than 1.5% below its record high of $2,069.40 in 2020. Gold has gained 12% in the last month alone and is up 25% from its recent low in November.

The factors behind this rise include a weaker US dollar, lower bond yields, and greater risk aversion due to concerns about the US recession and a looming debt-ceiling fight. These factors are likely to push investors towards gold as a safer investment option. Gold-mining stocks are also benefiting from this trend, with Newmont shares rising by 20% and the VanEck Gold Miners ETF rising by 28%.

While gold prices remain volatile, they are anticipated to continue rising as the economy and Fed policy evolve.