Fear of a new global outbreak triggers gold to 2012 highs

<p>Coronavirus outbreaks in Beijing and Germany, and the advance of the pandemic along the West Coast of the United States, has kept gold prices soaring. The precious metal is the quintessential safe-haven asset: the fear of renewed economic closures due to a new global outbreak of the pandemic has pushed its price to its highest level since 2012.<br></p><p>Gold prices have climbed 15% so far this year, and Goldman Sachs believes it will hit $2,000 an ounce if the uncertainty continues, and investors continue to abandon equities to take <a href="https://admiralmarkets.com/education/articles/general-trading/a-brief-introduction-to-gold" target="_blank">positions in gold</a>. If Goldman Sachs' forecast comes true, it would be a historical record. Gold's highest historical level is $1,921, from September 2011 during the worst of the last financial crisis. </p><p>Currently, as of June 22, 2020, the price of gold is around $ 1,750 per ounce, a high that it has not reached since November 2012. </p><p><a href="https://admiralmarkets.com/analytics/traders-blog/gold-triggered-new-highs"><img data-resize="auto" data-resize="auto" style="width:auto;" data-src="https://fxmedia.s3.amazonaws.com/articles/TB-1.png" rel="" alt="Gold price surges to 2012 highs potentially triggering a rally higher"></a></p><p><em>Source: Admiral Markets MetaTrader 5. Gold weekly chart. Data range: from August 24, 2008, to June 22, 2020. Prepared on June 22, 2020, at 9 am. Please note that past performance does not guarantee future returns. </em></p><p>However, fear of a flare-up of the coronavirus pandemic isn't the only thing skyrocketing the price of gold. The deterioration in relations between China and the United States following the Hong Kong national security law announced by Chinese president Xi Jinping has investors on edge, beginning to doubt their hopes of an imminent and rapid economic recovery. </p><p>US President Donald Trump has threatened to sever relations with China, again raising the possibility of a new trade war between the two countries at a time of great uncertainty. </p><p><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/gold"><img data-resize="auto" src="https://fxmedia.s3.amazonaws.com/articles/gold-race-CTA-1440×440-English_2-min.jpg" rel="" alt="Is there a Gold rally starting today – Trade gold with Admiral Markets" /></a></p><p><em>INFORMATION ABOUT ANALYTICAL MATERIALS:</em></p><p><em>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><p><em>1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</em></p><p><em>2.Any investment decision is made by each client alone whereas Admiral Markets AS (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.</em></p><p><em>3.With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</em></p><p><em>4.The Analysis is prepared by an independent analyst Carolina Caro, SEO implementor (hereinafter "Author") based on personal estimations.</em></p><p><em>5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.</em></p><p><em>6.Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</em></p><p><em>7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the </em><a href="https://admiralmarkets.com.au/risk-disclosure" target="_blank">risks involved</a><em>.</em></p>