Market history · Commodities ·
Gold rises above $2,000 an ounce for the first time
On 4 August 2020 gold topped $2,000 an ounce for the first time, CNBC and Forbes reported, extending a rise that had come as central banks cut rates to near zero and governments spent heavily to fight the pandemic. Investors bought gold as a store of value as real interest rates fell and the dollar weakened, and silver reached a seven-year high.
Gold had already been rising before the pandemic. The move to $2,000 showed how strongly it responds to falling real yields and to uncertainty.
The takeaway
Gold tends to do well when real returns on cash and bonds are low. It pays no income, so it depends on that backdrop.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.