Gold soars past historic $2,000 level as bitcoin marches higher
Gold continued to move higher during Wednesday's trading session after it cleared the $2,000 level for the first time.
Bullion was trading up 1.4% at the time of publication, near an all-time high of $2,047 per ounce. Those gains added to its 4-month rally, fueled by traders seeking safety amid an uncertain and fast-changing economic backdrop. Spot gold has picked up more than 31% over the last six months, according to data from Markets Insider.
Market prognosticators have tied the run-up to fears among investors that aggressive central bank monetary policy aimed at quelling the impact of Covid-19 could lead to inflation.
More recently, payroll firm ADP reported that non-farm private employers added 167,000 jobs in July, indicating a slow down in the labor market as coronavirus grips several states in the U.S., as The Financial Times reported.
There's also an upcoming stimulus package currently being negotiated by U.S. lawmakers. Investors see mounting government debt as a headwind for rates, which could lift bullion further.
"Gold is catching fire again on stimulus bets, some dollar weakness, and as risky assets get a boost on improving economic data and improving virus outlook," said Edward Moya, senior analyst at OANDA. "Gold has cleared the $2000 level and it might not be done as Treasury yields continue to slide."
As for digital assets, the ascent in that market continued Wednesday. At last check, bitcoin was up more than 4% over the past 24 hours and is currently trading at roughly $11,716.
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